Charged with or Accused of Sexual Assault? Understanding Your Legal Options

Differentiating Wrongful and Fraudulent Trading

Wrongful and fraudulent trading are critical offences within the business liquidation process, carrying significant legal implications. While both can result in director disqualification for up to 15 years, fraudulent trading is a criminal offence, making it more severe.

Navigating Business Offences

Business-related offences pose substantial risks, impacting careers and reputations. It’s vital for professionals to comprehend the nuances of trading-related crimes to protect themselves and their enterprises.

Legal Implications of Trading Offences

Exploring Trading Offences

During liquidation, director conduct over the preceding years undergoes scrutiny, particularly focusing on trading practices. Wrongful and fraudulent trading investigations aim to uncover any misconduct contributing to insolvency.

Differentiating Wrongful and Fraudulent Trading

Wrongful trading constitutes continuing business operations despite awareness of impending insolvency. On the other hand, fraudulent trading involves deliberate deception or fraud against creditors or customers, making it a criminal offence.

Consequences of Wrongful and Fraudulent Trading

A guilty verdict in wrongful trading results in personal liability for company debts pre-liquidation and director disqualification. Conversely, fraudulent trading carries similar penalties but adds the possibility of a prison Prison Sentence of up to 10 years.

Navigating Legal Challenges

For those facing accusations of wrongful or fraudulent trading, seeking expert legal guidance is essential. Experienced professionals can provide tailored advice and robust defence strategies to secure the best possible outcome.