Witness statement in support of a wrongful trading claim under sections 214 and 246ZB of the Insolvency Act 1986

Published by a LexisNexis Restructuring & Insolvency expert
Precedents

Witness statement in support of a wrongful trading claim under sections 214 and 246ZB of the Insolvency Act 1986

Published by a LexisNexis Restructuring & Insolvency expert

Precedents
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While both liquidators and administrators can now bring Wrongful trading claims under sections 214 and 246ZB of the Insolvency Act 1986, this Precedent is drafted from the perspective of a liquidator bringing such a claim.

Applicant(s): [insert initials and surname] [insert number of witness statement eg 1st] Exhibit: [insert exhibit description] Date: [insert date of witness statement]

CASE NO: [insert case number]

[IN THE HIGH COURT OF JUSTICE

BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES

INSOLVENCY AND COMPANIES LIST (ChD)

OR

IN THE HIGH COURT OF JUSTICE

BUSINESS AND PROPERTY COURTS IN [insert location]

INSOLVENCY AND COMPANIES LIST (ChD)

OR

IN THE COUNTY COURT AT [insert location]

BUSINESS AND PROPERTY WORK]

IN THE MATTER OF [insert company’s name]

AND IN THE MATTER OF THE INSOLVENCY ACT 1986

BETWEEN

  1. [Insert name(s) of the aPPLICANT(s)]        Applicant(s)

  1. AND

  1. [Insert name(s) of the respondent(s)]        Respondent(s)

[INSERT NUMBER] Witness statement of [Insert name OF OFFICE-HOLDER]

I, [insert name of the office-holder] of [insert the office-holder's business address]

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Jurisdiction(s):
United Kingdom
Key definition:
Wrongful trading definition
What does Wrongful trading mean?

The failure by a director of a company, at some time prior to the commencement of such company's winding up, to take every step to minimise the potential loss to the company's creditors once such director knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation.

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