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Commentary

19.1 Wrongful trading

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

19.1 Wrongful trading

| Commentary

19 Liability of directors

19.1 Wrongful trading

There are several aspects of insolvency law which should be considered by directors of companies believed to be at risk of continuing to trade whilst insolvent, of which four require specific notice here.

If a company has gone into insolvent liquidation, and at some time before the commencement of the winding up of the company, a person who was a director of the company at the time knew, or ought to have concluded, that there was no reasonable prospect that the company would avoid going into insolvent liquidation, the court may, on the

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