Misfeasance

Loss Recovery

Court awards aim to replace the missing corporate resources that were wasted through the improper act. Proving misfeasance requires showing a causal link between the poor conduct and the actual monetary loss. If the organization suffered no damage, the legal claim cannot be sustained.

Statutory Reach

Summary procedures exist to help liquidators recover money from directors during an insolvency. Under strict laws, misfeasance proceedings allow the judge to order the personal return of dividends or bonuses. This prevents insiders from leaving a bankrupt entity with assets they improperly secured.

Court Order

Restoration of the company fund is the standard remedy when a judge confirms the wrongdoing. A finding of misfeasance usually results in an individual being personally liable for the full amount of the mismanagement. The professional status of the actor determines the level of scrutiny applied by the law.