RE: Lunn20 Dec 2024 11:27
Fraudulent misrepresentation is when a statement is made and the person making it either knows it is not true, does not believe it to be true, or has a reckless disregard for whether it is true or not.
If a director makes a fraudulent misrepresentation with the intention that the other party will act on it, and that party goes on to suffer a loss as a result, the director could face individual liability for fraud.
In fraudulent misrepresentation claims, the claimant has the right to decide whether to bring the claim against the company or the director personally. Often this will be decided on which party has more money - so if the company is facing insolvency, the director can likely expect to the claim to be brought against them.
If this is the case we may find out.