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Hi Sir !!
I got this question from F4 examiner report, and I am really confused with this..Which of the following may be found liable for fraudulent trading under insolvency act 1986?
1. Creditors
2. Employees
3. ShareholdersA. 3 only
B. 1 and 2 only
C. 1, 2 and 3
D. 2 and 3Examiner report shows that the correct answer is option C which include all above parties..
Why creditors are held liable for fraudulent trading??
Please explain me.??I believe that the law talks in terms of “anyone that was knowingly participant in a scheme to defraud …”
It’s potentially the case that one (or more) creditors could be involved in a scheme whereby their claims were fraudulently preferred over the claims of other creditors
Maybe that’s the rationale for the examiner’s answer.
On another point, Mashooq, you’re going to need to change your avatar! The ACCA are VERY protective about the use of their logo and, so far as I am aware, you are not amongst the privileged few that has the ACCA permission!
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