Liquidators reclaim money director wrongly paid to himself

The director of an insolvent company has been ordered to return money he paid to himself at a time when he knew the business was struggling and likely to fail.

The case involved the director of a company specialising in waste management projects. The business got into financial difficulties and started to build up debts that it couldn’t afford to pay.

In spite of this, the director continued to make payments to himself and to a new company that he had set up. He also made payments to the bank that was helping to finance his new venture.

UK businesses forget to invoice clients for work worth £3.7billion

Small and medium-sized enterprises (SME) in the UK are failing to invoice their clients for up to £3.7billion a year, according to recent research.

Even though businesses are battling through a difficult economic climate, 20% admit they have forgotten to invoice for work on at least one occasion.

Of the 450 SMEs surveyed, 6% admitted they had forgotten to send an invoice for more than £10,000, and 12% forgot for work between £5,000 and £10,000.

Installation firm wins case against negligent surveyors

An installation company has won compensation from a firm of surveyors who were negligent when assessing the suitability of properties for cavity wall insulation.

The installers won their case even though they had been negligent themselves.

Employees of the surveying firm had inspected two timber-framed houses to determine whether they were suitable to have cavity wall insulation. They confirmed that they were suitable.

The installers were also obliged to check the suitability of the property under the terms of the trade bodies of which they were members.

Company fails to prevent competition from former employees

A pharmaceutical company has failed to prevent two former employees setting up their own firm and competing for business from one of its main customers, the NHS.

The issue arose when the company considered selling adrenaline pens but then decided not to go ahead. Two of its employees thought there was a market for the pens and resigned to set up their own business.

They were then successful in getting orders for the pens from the NHS.