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Hello sir
Fradulent trading and wrongful trading under insolvency act can only be applied if the company is insolvent?Fradulent trading under company act can be applied at both times of solvent and insolvent company?
ThankyouHi Garvit,
The offence of Fraudulent Trading is covered by the Companies Act, so even if the company is not insolvent, a director can be found guilty.
However, if you are pursuing a director under the Insolvency act for either Fraudulent or Wrongful Trading, then yes you will need to show that the company was “insolvent” at the time of the offence.
I hope this clarifies.
Kind regards,
Vijay
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