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Can you please tell me if I am correct
1. so wrongful trading is when a director knows the business is in trouble may wind up or not wind up but is in trouble but if such director knowingly or unknowingly continues to trade then it is called wrongful trading. further in the notes it says that the directors has commenced insolvent liquidation does this mean if wrong ful trading has occureed and later the company goes into insolvent liqudation then the director and may be others may be liable??2. Fradulent Trading is when there is INTENT to defraud the creditors . You mentined there is civil as well as criminal aspect to it .
The part that confuses me is the civil part it its almost like wrongful trading the difference is the intent part.
if the director was proven to have intent then wrong ful trading can be fradulent trading???The aspect of wrongful trading was introduced because it was too onerous to establish the ‘intent’ element necessary for a successful fraudulent trading action.
It’s the ‘intent to defraud’ that marks fraudulent trading. Wrongful trading could just be the result of incompetence.
Is that better?
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