---
title: "Advising Directors on Risk"
url: https://windinguppetitionsolicitors.co.uk/risks-for-directors/
date: 2011-07-22
modified: 2026-06-02
author: "Winding-up Petition Lawyer"
description: "A director of a company that is in financial difficulties could face personal liability in respect of: Personal guarantees.Fraudulent trading (section 213, 1986 Act).Wrongful trading (section 214, 1986 Act).Misfeasance or..."
word_count: 150
---

# Advising Directors on Risk

A director of a company that is in financial difficulties could face personal liability in respect of:

- Personal guarantees.- Fraudulent trading (*section 213, 1986 Act*).- Wrongful trading (*section 214, 1986 Act*).- Misfeasance or breach of duty (including the statutory general duties under the Companies Act 2006).- Where the company is a public company, serious loss of capital.- Where the company is listed, the Listing, Prospectus, Disclosure and Transparency Rules and the Financial Services Markets Act 2000. (For more information on these Rules.- Other offences under the 1986 Act.

Directors should seek external advice as soon as they are aware that the company is in financial difficulties.

**If you are facing a Winding-Up Petition, we can negotiate on your behalf and advise you through the Insolvency and Companies Court process. Our Winding-Up Experts have specialist legal information and advice which will be tailored to your situation. To contact one of our Solicitors or Barristers please [click here](https://windinguppetitionsolicitors.co.uk/legal-case-assessment) or call 02071830529.**