Wrongful trading
A potential claim against directors who kept trading when they knew, or should have known, insolvent liquidation or administration could not reasonably be avoided and failed to take appropriate steps.
Related terms
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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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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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