What is Fraudulent Trading?
Fraudulent Trading is the action by a director of a company of carrying out its business with the intention of defrauding its creditors. If found to have acted in such a manner a director will be liable to contribute to the assets of the company as the court thinks fit.
Fraudulent Trading also arises if trading is undertaken for a fraudulent purpose.
This is more serious than Wrongful Trading because generally there is an element of dishonesty shown.