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EXAMINER REPORT QUESTION

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › EXAMINER REPORT QUESTION

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarMikeLittle.
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    Posts
  • December 4, 2019 at 6:50 am #554813
    Avatardraiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    Which of the following may be found liable for fraudulent trading under s.213 Insolvency Act 1986?
    (1) Creditors
    (2) Employees
    (3) Shareholders
    A (3) only
    B (1) and (2) only
    C (1), (2) and (3) (correct)
    D (2) and (3) only

    SIRRR 🙁 please explain how on earth would creditors be liable?

    December 4, 2019 at 4:41 pm #554938
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    If creditors are knowingly particating in the directors’ fraudulent activities, then the creditors could be held liable

    Why not?

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