Wrongful trading is a type of civil wrong found in UK insolvency law, under s 214 Insolvency Act 1986. It was introduced to enable contributions to be obtained for the benefit of creditors from those responsible for mismanagement of the insolvent company. ==The Insolvency Act 1986== The principle of wrongful trading was introduced in the Insolvenc...
Found on
http://en.wikipedia.org/wiki/Wrongful_trading
Applied to companies in liquidation where a director allowed the company to continue trading in circumstances where he should have concluded that there was no reasonable prospect that the company would avoid going into solvent liquidation. The directors involved may be made personally liable to make a contribution to the company's assets.
Found on
http://www.encyclo.co.uk/local/20407
Wrongful trading is the carrying on business knowing that the company has no reasonable prospect of avoiding an insolvent winding-up. Directors responsible may be ordered to contribute to the assets of the company when the winding-up occurs.
Found on
http://www.probertencyclopaedia.com/browse/JW.HTM
Applied to companies in liquidation where a director allowed the company to continue trading in circumstances where he should have concluded that there was no reasonable prospect that the company would avoid going into solvent liquidation. The directors involved may be made personally liable to make a contribution to the company's assets.
Found on
https://www.encyclo.co.uk/local/20527
No exact match found.
