Wrongful Trading

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Insolvency

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Misfeasance

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What is Fraudulent Trading?

Fraud

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.

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