Wrongful Trading in UK Law
-
Phillip Roberts (as Liquidator of Onslow Ditchling Ltd) v Peter Frohlich and Another
“
In my judgment each ought to have concluded at or about 1 September 2004 (certainly by ( say) 14 September 2004) that there was no realistic prospect of avoiding an insolvent liquidation.
-
Ward v Aitken and Others ; Re Oasis Merchandising Services Ltd
“
Considerations such as these lead us to consider whether a distinction should not be drawn between assets which are the property of the company at the time of the commencement of the liquidation (and the property representing the same), including rights of action which arose and might have been pursued by the company itself prior to the liquidation, and assets which only arise after the liquidation of the company and are recoverable only by the liquidator pursuant to statutory powers conferred on him.
We respectfully agree, supporting as it does the distinction which we would draw between the property of the company at the commencement of the litigation (and property representing the same) and property which is subsequently acquired by the liquidator through the exercise of rights conferred on him alone by statute and which is to be held on the statutory trust for distribution by the liquidator.
-
Re Sevenoaks Stationers (Retail) Ltd
“
Mr. Cruddas made a deliberate decision to pay only those creditors who pressed for payment. The obvious result was that the two companies traded, when in fact insolvent and known to be in difficulties at the expense of those creditors who, like the Crown, happened not to be pressing for payment. Such conduct on the part of a director can well, in my judgment, be relied on as a ground for saying that he is unfit to be concerned in the management of a company.
-
Colin Thomas Burke (Liquidator of Idessa (UK) Ltd) and Another v John Morrison and Another
“
I am satisfied that whether it is to be viewed strictly as a shifting of the evidential burden or simply an example of the well-settled principle that a fiduciary is obliged to account for his dealings with the trust estate that Mr Aslett is correct to say that once the liquidator proves the relevant payment has been made the evidential burden is on the Respondents to explain the transactions in question.
-
Stone and Rolls Ltd ((in Liquidation)) v Moore Stephens (A Firm)
“
The company is not fixed with its directors' fraudulent intentions because that would be unjust to its innocent participators (honest directors who were deceived, and shareholders who were cheated); the guilty are presumed not to pass on their guilty knowledge to the innocent.
-
Nori Holding Ltd and Others v Public Joint-Stock Company 'Bank Otkritie Financial Corporation'
“
In this case the parties' dispute is a straightforward factual dispute whether the August transactions constitute a fraud carried out on the Bank to replace valuable secured loans with worthless bonds. A variety of legal labels can be and have been attached to that claim, including the labels of transaction with unequal consideration and abuse of rights under Russian law and conspiracy to defraud under Cypriot law.
- The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020
-
Company Directors Disqualification Act 1986
... ... or not) under F15section 993 of the Companies Act 2006 (fraudulent trading) , or(b) has otherwise been guilty, while an officer or liquidator of the ... Other cases of disqualification ... 10: Participation in wrongful trading ... (1) Where the court makes a declaration under section 213 or ... ...
-
Insolvency Act 1986
... ... 39(1) substituted (1.10.2008) by The Companies (Trading Disclosures) (Insolvency) Regulations 2008 (S.I. 2008/1897), reg. 2(1) ... for company’s fraudulent trading) or section 214 (wrongful trading) in Chapter X of this Part ... (3) A reference in a company’s ... ...
- Insolvency Act 1985
-
Wrongful Trading: An Impotent Remedy?
Improved creditor and community protection seemed attainable goals when Professor Daniel Prentice described s. 214 of the Insolvency Act (‘s. 214’) as ‘one of the most important developments in com...
- Application for a declaration that the director has been engaged in wrongful trading
-
What Can We Expect to Gain from Reforming the Insolvent Trading Remedy?
This paper argues that reform of the wrongful trading remedy in section 214 of the Insolvency Act 1986 is unlikely to yield significant increases in civil recovery for creditors of insolvent compan...... ... What Can We Expect to Gain from Reforming the Insolvent Trading Remedy? Richard Williams * This paper argues that reform of the wrongful trading remedy in section 214 of the Insolvency Act 1986 is unlikely to yield significant increases in civil recovery for creditors of insolvent ... ...
-
Index
... ... Administration orders, discharge of; ... Fraudulent trading; Preferences; Transactions at an undervalue; Transactions prejudicial to reditors; Wrongful trading appointment by court, see Administration orders out of court ... ...
-
Covid-19: Wrongful Trading
For directors of companies facing financial difficulties, the wrongful trading regime can be front of mind, given the exposure to risk of personal liability.
-
Further suspension of UK wrongful trading laws introduced
On 26 November 2020, The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (the “Regula...
-
Second Suspension of liability for Wrongful Trading
On 26 November 2020, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (the “Regula...
-
Wrongful trading suspension 're activated' by UK Government leaving directors with a 2-month
Today, new legislation comes into force* that provides directors of companies in financial difficulty with a second breathing space from the financial impact of the wrongful trading provisions.
-
Apply to become someone's deputy (make a declaration)
Court of Protection forms including the COP1 application to make decisions on someone's behalf.... ... been the subject of a declaration under section 213 (fraudulent trading) ... or section 214 (wrongful trading) of the Insolvency Act 1986? ... If ... ...