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Misfeasance

The term has at least two separate definitions which are only slightly connected: one of them is the general use and the other is the legal definition. The first one defines misfeasance as a breach of duty in relation to the funds of a company by its managers. This definition might look strange or even hard to understand, but it states a very simple issue: a wrong that arises from an action, in legal matters it is sometimes defined as wrongful use of legal authority. Related to insolvency, it is in close relation with the Insolvency Act from 1986, which has a remedy against directors who acted in breach of their duties. Or, in other words: the Insolvency Act from 1986 has a remedy against directors who had acted in a wrongful or sometimes injurious manner.