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.
Related terms
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Defrauding creditors
Dishonestly putting assets beyond creditors’ reach or otherwise prejudicing them. This can have serious civil and criminal consequences.
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Insolvent trading
A broad expression for continuing to trade while financially insolvent. The legal consequences depend on the director’s conduct and the specific statutory rules involved.
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Trading while insolvent
Continuing to operate a business when it is insolvent. This is not automatically unlawful, but directors must act carefully and comply with duties to creditors.
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