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.
Related terms
-
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.
-
Co-director
Another director of the same company. Liability is not automatically shared equally; it depends on the obligation, conduct and documents involved.
-
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.
What’s your next step?
Get in touch with us at Bell & Company today to see how we can help