When you rely on a lawyer to deal with a company matter — such as a director’s loan — and they fail to take action, it can leave you feeling uncertain about your position and worried about the potential consequences. Director’s loan issues can have serious financial and legal implications, so delays or inaction from a lawyer can understandably be stressful. Gaining clarity on your next steps can help you regain control of the situation.
Understanding the issue or context
You instructed an Irish lawyer to act on a director’s loan issue, but they did not follow through. This can create confusion about:
- whether the matter is now at risk
- whether the delay has created personal liability
- how to hold the lawyer accountable
- what steps you should take to protect your position
Many people hesitate to challenge their lawyer, but when a solicitor fails to act, it is important to address the issue clearly and formally.
The legal rules or framework
Although this involves an Irish lawyer, the general principles on solicitor conduct and professional responsibility are similar across the UK and Ireland. Solicitors are expected to:
- act promptly and professionally
- keep clients informed
- carry out agreed instructions within a reasonable time
- warn clients of risks and consequences of delay
Where a solicitor fails to act, this may raise issues of professional negligence, poor service, or both.
Director’s loan implications
Director’s loans can raise risks such as:
- personal liability for sums owed to the company
- tax consequences
- scrutiny if the company becomes insolvent
- potential claims by a liquidator
Delay in dealing with the issue can worsen these risks, which is why timely legal action is important.
Complaints and regulatory oversight
In Ireland, solicitor conduct is overseen by the Legal Services Regulatory Authority (LSRA). Clients are entitled to make complaints about:
- inadequate service
- delays
- failure to act
- breaches of professional duty
Before escalating to the regulator, the solicitor must be given a chance to respond formally.
Practical steps to take (step-by-step guidance)
- Prepare a clear written summary of events
Note dates, instructions you gave, and what the lawyer failed to do. This helps organise your request and strengthens any complaint later. - Send a formal written complaint to the lawyer
Your letter should:- explain what you instructed them to do
- state how and when they failed to act
- outline any consequences or risks this has caused
- request a written explanation and a resolution
- Ask for the firm’s internal complaints procedure
Every regulated firm must provide this. Following it ensures your complaint is handled properly. - Request your file if you wish to move to another solicitor
You are entitled to copies of your documents so another lawyer can pick up the matter promptly. - Consider whether the delay has caused financial loss
If you have suffered actual harm because the lawyer failed to act, you may need to consider whether this amounts to negligence. Professional negligence is separate from poor service and requires specialist advice. - Escalate to the LSRA if the response is inadequate
If the firm does not reply within a reasonable timeframe, or the matter is unresolved, you can refer it to the regulator for review. - Seek new legal advice on the director’s loan issue
To protect your position, another solicitor may need to address the underlying director’s loan concerns promptly.
Common pitfalls to avoid
- Relying on verbal follow-ups
Always put concerns in writing. This creates a clear record of delays. - Waiting too long to raise the issue
Delay can worsen director’s loan consequences. - Assuming the lawyer’s inaction removes your obligation
Legal duties relating to director’s loans still apply. - Not requesting your file
Without the correct documents, a new solicitor cannot act efficiently. - Failing to escalate the complaint
If the firm does not resolve the issue, the LSRA can step in.
Frequently Asked Questions
What counts as a failure to act by a solicitor?
Unreasonable delays, ignoring instructions, failing to progress agreed work, or not responding to communications.
Does the lawyer’s delay remove my liability for the director’s loan?
No. The legal obligation remains until properly resolved. Inaction can sometimes increase risk.
Can I complain even if no financial loss has occurred?
Yes. Poor service and delays are complaint-worthy even without financial loss.
Should I change solicitors?
If the matter is urgent or the delay is affecting your position, changing solicitors may be necessary.
Can I claim compensation for solicitor negligence?
Only if you suffered actual loss due to their failure. This requires separate legal assessment.
Does the LSRA handle all solicitor complaints in Ireland?
Yes. They oversee service complaints and conduct issues.
Conclusion
If you’d like to understand your rights and options in plain English, visit LegalGuidance.org — a free resource powered by Martin Taggart Legal Consulting.
For professional, fixed-fee advice from a UK solicitor, visit MartinTaggart.com.
This information is general guidance only and not legal advice. For personalised support, please contact Martin Taggart Legal Consulting.