Practical Law UK Glossary 2-107-6615 (Approx. 3 pages)
Glossary
Fraudulent trading.
Where, during the course of a winding up or administration of a company, it appears that any business of the company has been carried on with the intent to defraud creditors of the company. Fraudulent trading may constitute a criminal offence. Aliquidator or, in respect of business of the company conducted on or after 1 October 2015, an administrator can apply to the court to obtain a contribution from those who were knowingly parties to the carrying on of the business in such a manner (sections 213 and 246ZA, Insolvency Act 1986).