| 释义 |
wrongful trading
Carrying on business knowing that the company has no reasonable prospect of avoiding an insolvent winding-up (Insolvency Act 1986 s 214). Such knowledge may be implied if a reasonably diligent person would have realized the position (Re Produce Marketing Consortium Ltd (No 2) [1989] 1 WLR 745; Re Rod Gunner Organization Ltd [2004] EWHC 316 (Ch)). Directors responsible may be ordered to contribute to the assets of the company when the winding-up occurs unless they can prove that, after acquiring the relevant knowledge, they endeavoured to minimize loss to the company’s creditors, e.g. by initiating a winding-up or administration of the company. See also fraudulent trading. |