Fraudulent trading under section 993 Companies Act 2006


Published by a ³ÉÈËÓ°Òô Corporate Crime expert
Practice notes

Fraudulent trading under section 993 Companies Act 2006


Published by a ³ÉÈËÓ°Òô Corporate Crime expert

Practice notes
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Fraudulent trading

Fraudulent trading by a company is an offence prohibited by section 993 of the Companies Act 2006 (CA 2006). Section 9 of the Fraud Act 2006 (FrA 2006), makes fraudulent trading by sole traders, partnerships and trusts and other non-corporate entities a criminal offence. See Practice Note: Fraudulent trading under the Fraud Act 2006.

The offence under CA 2006, s 993 is triable either in the magistrates' court or the Crown Court.

Elements of CA 2006 offence of fraudulent trading

There are two limbs to this offence:

  1. •

    carrying on the business of a company with Intent to defraud creditors of the company or the creditors of any other person, the elements of which are:

    1. â—¦

      carrying on the business of a company

    2. â—¦

      with intent to defraud creditors of the company or the creditors of any other person, and

    3. â—¦

      knowingly being a party to that Activity

  2. •

    carrying on the business of a company for any fraudulent purpose, the element of which are:

    1. â—¦

      carrying on the

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United Kingdom
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Fraudulent trading definition
What does Fraudulent trading mean?

The carrying on of the business of a company with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent effect, as set out under the Insolvency Act 1986, s 213.

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