Wrongful trading under the UK law and the subsidiary liability in the event of insolvency under the Section 68 of the Business Corporations Act
Abstract
The chapter deals with the UK and Czech legal regulation of consequences of statutory body members' failure to avert insolvency of the business corporation. The first part of the chapter analyzes the wrongful trading and related fraudulent trading under the UK Insolvency Act.
Afterwards, the second part of the chapter discusses the sanction mechanisms regulated by the Czech law. A short part is dedicated to liability for the late filing of the insolvency petition and then the secondary liability in the event of insolvency under the Business Corporations Act is thoroughly analyzed.
It points out the essential conceptual distinctions between UK and Czech legal regulation and the problematic issues related to the Czech version of the wrongful trading.