Fraudulent trading liability can render company officers personally and jointly liable and subject to enforcement charges. Application under section 339(1) alleges the company's business was carried on during a specified period with intent to defraud creditors and that named respondents knowingly participated; it seeks declarations that those respondents are personally and without limitation liable for debts incurred in that period, that they are jointly and severally liable to pay sums representing such debts to the liquidator or applicant, an order for payment as the Tribunal deems fit, creation of a first charge on specified respondent assets or debentures for enforcement, and costs to the applicant.
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 trading liability can render company officers personally and jointly liable and subject to enforcement charges.
Application under section 339(1) alleges the company's business was carried on during a specified period with intent to defraud creditors and that named respondents knowingly participated; it seeks declarations that those respondents are personally and without limitation liable for debts incurred in that period, that they are jointly and severally liable to pay sums representing such debts to the liquidator or applicant, an order for payment as the Tribunal deems fit, creation of a first charge on specified respondent assets or debentures for enforcement, and costs to the applicant.
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