wrongful trading
Definition
Allowing a firm to continue trading in a situation where a reasonably diligent person would realize that the firm's insolvency is inevitable. Directors of a firm who know (or ought to have known) that its insolvency could not be avoided may be held personally liable to its creditors if it becomes bankrupt or is liquidated. See also fraudulent trading.
wrongful trading is in the Banking, Commerce & Finance, Corporate, Commercial, & General Law and Entrepreneurship, Management, & Leadership subjects.
wrongful trading appears in the definitions of the following terms: fraudulent trading and cross-firing
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