Wrongful Trading - A Comprehensive Introduction for Insolvency Professionals

Introduction

Claims for wrongful trading against directors of insolvent companies are not new.

However, when a company can be considered to be wrongfully trading can often seem to be a subjective assessment, with the landscape arguably becoming more confused now due to COVID-19 legislation allowing a brief respite from claims.

Directors can be forgiven for not being clear on when to cease trading and when they can lawfully continue in times of financial difficulty without facing personal liability.

Now that administrators as well as liquidators can bring these claims, it is more important than ever that directors, and those advising them, are as clear as they can be on the danger signs, and how to avoid possible claims for personal liability.

Equally important is that insolvency practitioners are clear on when a claim might be successful.

This new webinar, looking from both the point of view of both the insolvency professionals taking claims, and directors and those advising them, will look at what might constitute wrongful trading, what are the penalties for directors found to be wrongfully trading and when might a successful claim be made.

It will also consider what behaviour should directors follow, and pitfalls to look out for to avoid a personal liability and prejudicing creditors during times of financial stress.

What You Will Learn

This webinar will cover the following:

• What is wrongful trading, and who can be held liable?
• Who can bring a claim for wrongful trading?
• What is needed to establish a wrongful trading claim?
• Examples of when wrongful trading might occur
• When does optimism become unrealistic?
• What are the penalties for wrongful trading?
• How has COVID-19 legislation affected wrongful trading claims?
• Tips for directors to avoid personal liability when facing financial difficulties

This webinar was recorded on 10th January 2022