Defrauding creditors
Dishonestly putting assets beyond creditors’ reach or otherwise prejudicing them. This can have serious civil and criminal consequences.
Related terms
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Fraudulent trading
Carrying on a company’s business with intent to defraud creditors or for another fraudulent purpose. It can lead to serious civil and criminal consequences.
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Limited liability
The principle that shareholders or members are generally not personally responsible for a company’s debts beyond their agreed investment, unless a separate basis for liability exists.
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Duty to creditors
The principle that directors must give increasing weight to creditors’ interests when insolvency is probable or the company is insolvent.
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