Week 13 - Director's Liabilities upon Insolvency

Question 1

Wrongful trading: What is the first reason a director may be ordered by the court to contribute to the company’s assets?

Answer 1

The company has gone into liquidation

Question 2

Wrongful trading: What is the second reason a director may be ordered by the court to contribute to the company’s assets?

Answer 2

They continued to trade when they knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation