| Commentary

160 Fraudulent trading

| Commentary

160 Fraudulent trading

The court can require personal contributions from persons who were knowingly party to carrying on the business of a company with intent to defraud creditors of the company, or creditors of any other person, where that company has subsequently gone into liquidation or entered administration1. It can infer an intent to defraud where, to the knowledge of the directors, the company continued trading when there was no reasonable prospect of its debts being paid2. However, it is still more difficult to prove fraudulent trading and, consequently, it is more likely that a liquidator

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