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 ?
Two brothers have denied fraudulent trading at a Wolverhampton garage.
Wolfe was jailed for four years and Hope for two years after admitting forgery, fraudulent trading and money laundering following an investigation by Norfolk Trading Standards.
Former steelworker Smith, from Port Talbot, pleaded guilty to three counts of fraudulent trading. He was jailed for three years and nine months and was also made subject of a confiscation order for PS75,000.
On Friday, Smith, from Port Talbot, was sentenced to three years and nine months at Cardiff Crown Court after previously pleaded guilty to three counts of fraudulent trading.
Butler, who pleaded guilty to fraudulent trading, trademarks and tobacco health warning offences, was jailed for 14 months when he appeared at Wolverhampton Crown Court on Thursday.
"His involvement proved to be dishonest, resulting in (an earlier) charge of fraudulent trading.
At Warwick Crown Court, Weeks pleaded guilty to a charge of fraudulent trading in a prosecution brought by Warwickshire Trading Standards department.
The brothers have now been banned from being directors, after pleading guilty to charges of fraudulent trading and tax evasion.
In the region of 400 complaints were received from across the UK in relation to the various items, leading to a joint investigation and prosecution by Durham County Council and Durham Constabulary which have now concluded with the brothers being jailed and banned from being directors, on charges of fraudulent trading and tax evasion.
In the region of 400 complaints were received from across the UK in relation to the various items, leading to a joint investigation and prosecutionby Durham County Council and DurhamConstabulary which have now concluded with the brothers being jailed and banned from being directors, on charges of fraudulent trading and tax evasion.
Beverley Smith, 61, was jailed for 21 months at Chester Crown Court after jurors convicted her of fraudulent trading in March.