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.