If you discover that your business has fallen victim to a payment scam, it is essential you act quickly. We provide guidance on immediate practical steps to take and summarise the main options for legal action to try to recover misappropriated funds.
Payment scams are on the increase. They are big business for fraudsters and businesses of all shapes and sizes are being targeted. All businesses need to be alert to the risks and to ensure staff receive training to combat these convincing scams.
Judgment was handed down in the important case of Various Claimants v Wm Morrison Supermarket Plc (2017) concerning criminal misuse of data by an employee, a timely case given the upcoming enforcement date of the GDPR, under which the frequency of employee group actions is expected to increase.
Only in exceptional circumstances will a court “pierce the corporate veil” and attach liability to a shareholder for the actions of a company thus reaffirming a long-standing principle of contract law.
In the ordinary ebb and flow of business, documenting the terms on which deals are struck is not always at the forefront of the minds of those involved: precisely documented terms are, after all, not the main object of the deal and can even be viewed with suspicion (as preventing business, rather than helping it).
Articles of Association (“Articles”) are rarely considered as the contract between a company and its shareholder(s) or the basic manual for the operation of that company, but this is exactly what they are.