Fraudulent trading Flashcards
(6 cards)
1
Q
who can bring this claim?
A
liquidator/administrator
2
Q
what happens if the claim is successful?
A
the court can declare D is liable to contribute to the company’s assets
3
Q
what are the different offences?
A
Criminal and civil offences of fraudulent trading (we look at civil)
4
Q
what are the grounds?
A
D carried on the business with the intention of:
o Defrauding creditors; or
o Any other fraudulent purpose
5
Q
what tests does the court apply?
A
o What was Ds actual knowledge or belief of the facts? (subjective)
o Was D’s conduct dishonest, applying standards of ordinary decent people (objective)?
6
Q
what is the problem with this type of claim?
A
it is hard to evidence. Often brought simultaneously with a wrongful trading claim.
