Wrongful Trading - Key Issues & Recent Case Law

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.

Directors can be forgiven for not being clear on when to cease trading and when, in certain circumstances, 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 under the wrongful trading provisions of the Insolvency Act 1986.

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

This 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 the recent case of Wright and another (liquidators of BHS Group Ltd and other companies (all in liquidation)) v Chappell and others which raised a potential new claim against directors, called ‘wrongful misfeasance’, and discuss how this might differ from wrongful trading.

Finally, the webinar will 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 short 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 - including relevant case law
• What is wrongful misfeasance, and how does this differ from wrongful trading?
• When does optimism become unrealistic?
• What are the penalties for wrongful trading?
• Tips for directors to avoid personal liability when facing financial difficulties

This pre-recorded webinar will be available to view from Friday 31st January 2025

Alternatively, you can gain access to this webinar and 1,700+ others via the MBL Webinar Subscription. Please email [email protected] for more details.