Fraudulent winding up: personal unlimited liability may be imposed on those knowingly carrying on business to defraud creditors. If during a company's winding up business was carried on with intent to defraud creditors or for a fraudulent purpose, the Tribunal may, on application by the Official Liquidator, liquidator, creditor or contributory, declare persons knowingly party to that conduct personally responsible without limitation for company debts as it directs; the Tribunal may make and enforce charges on debts, mortgages or interests in company assets, and the civil declaration coexists with criminal penalties for those knowingly involved.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fraudulent winding up: personal unlimited liability may be imposed on those knowingly carrying on business to defraud creditors.
If during a company's winding up business was carried on with intent to defraud creditors or for a fraudulent purpose, the Tribunal may, on application by the Official Liquidator, liquidator, creditor or contributory, declare persons knowingly party to that conduct personally responsible without limitation for company debts as it directs; the Tribunal may make and enforce charges on debts, mortgages or interests in company assets, and the civil declaration coexists with criminal penalties for those knowingly involved.
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