High Court distinguishes DLA debt from misfeasance claim

What was published

The High Court considered a liquidator claim including an alleged £112,506 overdrawn director’s loan account and other disputed payments. The judgment distinguishes an ordinary repayment debt under a director’s loan from claims based on misfeasance or breach of duty, while also examining the underlying evidence, company records and director conduct.

Why it matters

A liquidator’s DLA figure should be tested against the underlying ledger, bank transactions, accounting journals, dividends, remuneration, expenses and contemporaneous records. The legal basis of the claim also matters: a repayment debt and a misfeasance claim are not automatically the same thing.

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