Transactions in fraud of creditors
Produced in partnership with Micheal Murphy and Amelia Clegg of 23 Essex Street Chambers
Transactions in fraud of creditors

The following Corporate Crime guidance note Produced in partnership with Micheal Murphy and Amelia Clegg of 23 Essex Street Chambers provides comprehensive and up to date legal information covering:

  • Transactions in fraud of creditors
  • Offence of making transactions in fraud of creditors
  • Statutory defence for transactions in fraud of creditors
  • Alternative charge
  • Sentencing for transactions in fraud of creditors

Offence of making transactions in fraud of creditors

Any present or past officer of a company which is ordered to be wound up by the court or which passes a resolution for voluntary winding up is deemed to have committed an offence if whilst an officer of the company:

  1. they made (or caused to be made) any gift, or transfer of, or charge on, or has caused or connived at the levying of any execution against the company's property, or

  2. they concealed or removed any part of the company's property after or within two months before the date of any unsatisfied judgment or order for the payment of money was obtained against the company

The offence can be tried in the magistrates' court or the Crown Court.

A shadow director is not an officer for the purposes of this offence.

A person 'causes' a thing to be done when they order or direct it to be done.