117 Power for administrator to bring claim for fraudulent or wrongful trading
Small Business, Enterprise and Employment Act 2015 (2015 c 26) | Legislation

Part 10 Insolvency

Office-Holder Actions

117  Power for administrator to bring claim for fraudulent or wrongful trading

(1)     The Insolvency Act 1986 is amended as follows.

(2)     After section 246 insert—

“Administration: penalisation of directors etc
246ZA Fraudulent trading: administration

(1)     If while a company is in administration it appears that any business of the company has been carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, the following has effect.

(2)     The court, on the application of the administrator, may declare that any persons who were knowingly parties to the carrying on of the business in the manner mentioned in subsection (1) are to be liable to make such contributions (if any) to the company's assets as the court thinks proper.

246ZB Wrongful trading: administration

(1)     Subject to subsection (3), if while a company is in administration it appears that subsection (2) applies in relation to a person who

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