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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

11 JAN 2012

Wrongful trading

A liquidator who seeks an order against directors on the basis that they have engaged in wrongful trading must plead a date on which this conduct occurred. Recently courts seemed to accept that liquidators can nominate dates in the alternative (Roberts v Frohlich [2011] EWHC 257 (Ch) [2011] 2 BCLC 635; Re Kudos Business Solutions [2011] EWHC 1436 (Ch) at [53])). Furthermore dates can be estimates. For instance, in Roberts v Frohlich the case pleaded was that the wrongful trading occurred ‘around 1 July 2004 (or alternatively on or around 1 September 2004)’. In this case the judge found that wrongful trading had occurred by 14 September 2004 and allowed the liquidator’s claim.

See further: Commentary to Rule 214 of the Insolvency Act 1986 in Insolvency Legislation: Annotation and Commentary Online, Louis Doyle and Andrew Keay (2012).


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