Form No. 120 - Summons under section 542(1)

Personal liability for fraudulent trading can be declared, enabling payment orders and creation of charges to satisfy company debts.

Summons permits the liquidator or a creditor/contributory to seek declarations that respondents knowingly carried on the company's business with intent to defraud creditors, to declare them personally and without limitation liable for debts incurred in the relevant period, to assess sums payable to the liquidator for goods, services or liabilities, to order payment, to create first charges on specified respondent assets or debentures to secure those liabilities, and to award costs and incidental orders; notice warns respondents that absence may result in orders in their absence.