fraudulent trading


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fraudulent trading

the criminal offence of carrying on ofbusiness by a company for a fraudulent purpose or in defraud of creditors.

If in the course of the winding up of a company it appears that a company as been so trading, the court, on the application of the liquidator, may declare that any persons who were knowingly party to such trading are to be liable to make such contributions to the company's assets as the court may think proper. There is no limit to the possible fine and provision is made for imprisonment for up to 7 years.

References in periodicals archive ?
The charge of fraudulent trading relates to Roberts receiving money for deals that did not exist.
Now gang leader Paul Hanna, 51, from Leicester, has been jailed for three-and-a-half years for fraudulent trading.
The 55-year-old was jailed for six years in October last year after admitting fraudulent trading after more than 500 complaints were lodged about his Derby-based Wyvern Media firm.
Ahmad, of Princess Gardens, Dewsbury, admitted fraudulent trading and was jailed for 15 months at Leeds Crown Court in April.
After a five-year investigation, sparked by Trading Standards and Consumer Direct spotting a pattern of complaints and contacting Merseyside Police, George Williams and his operations manager, Gayle Leahair, were found guilty of conspiracy to commit fraud by false representation and fraudulent trading.
Philip Murray-Shelley received five years for conspiracy to commit fraud by false representation, while his wife was jailed for two and a half years for fraudulent trading and conspiracy to steal.
An efficient response and a thorough investigation revealed a maior fraudulent trading exercise, resulting in more than 1,300 items of jewellery being seized.
The pair were both jailed for two years at Newcastle Crown Court on Friday after admitting fraudulent trading.
Simon Foster, 48, from the south of Staffordshire; Stuart Cox, 40, from the West Midlands and Johnathan Husselbee, aged 36, from the south of Staffordshire were convicted of fraudulent trading and conspiracy to defraud on Tuesday at Stafford Crown Court.
Michael Bancroft, aged 69, is charged with conspiracy to corrupt, three counts of fraudulent trading and money laundering.
Daniel Gray, Margaret Gray, 48, of Lamonby Way, Cramlington, and Rush, 50, of Lavendon Close, Cramlington, are also jointly charged with fraudulent trading and failing to keep accounting records.
These things distinguish fraudulent trading from normal investment banking business.