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Hello Sir.
Its a question from BPP revision kit.
Which two of the following are criminal offences that directors of a company may commit as a consequence of their company being insolvent.
1.Acting as a director whilst disqualified
2.Making a false delcaration of solvency
3.Wrongful trading
4.Abuse of positionMy answer is 1 & 4.
The answer is actually 2 & 3. I can’t understand why because i have learn that wrongful trading is not a criminal offence.
Thanks for helping Sir.
I believe the key to this question is the phrase “as a consequence of their company being insolvent.”
Wrongful trading, as you say, is not itself criminal. But if the directors, having declared insolvency, then go on to trade whilst insolvent, that would be criminal
Similarly, acting as a director whilst disqualified IS a criminal offence, but it’s not an offence caused by the declaration of insolvency. It’s an offence whatever the company’s position
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