*/
Company – Administration-Director. The Chancery Division ruled on the joint liquidators' application for a declaration of wrongful trading that, although the directors of a company in administration ought to have concluded by a certain date that there was no reasonable prospect of the company avoiding insolvent liquidation, continued trading had not caused loss to the company overall or worsen the position of the creditors as a whole. Accordingly, no declaration was made under s 214(1) of the Insolvency Act 1986, requiring the directors to make any contribution to the assets of the company in respect of any losses said to have been caused to the company during the period of wrongful trading.
Company – Administration-Director. The Chancery Division ruled on the joint liquidators' application for a declaration of wrongful trading that, although the directors of a company in administration ought to have concluded by a certain date that there was no reasonable prospect of the company avoiding insolvent liquidation, continued trading had not caused loss to the company overall or worsen the position of the creditors as a whole. Accordingly, no declaration was made under s 214(1) of the Insolvency Act 1986, requiring the directors to make any contribution to the assets of the company in respect of any losses said to have been caused to the company during the period of wrongful trading.
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