Ch 19- Insolvency Flashcards
1
Q
Fraudulent trading=
Trading whilst insolvent with intention of defrauding creditors.
CRIMINAL OFFENCE- NEED PROVEN Beyond reasonable doubt
(Imprisonment up to 10 years)
Disqualified 2-15 years
A
2
Q
Wrongful trading=
Trade when knew/ought to conclude no reasonable prospect of avoiding insolvency liquidation.
CIVIL OFFENCE- NEEDS TO BE PROVEN on balance of probabilities
Disqualified 2-15 years
A
