The criminal offence of ‘Fraudulent Trading’ occurs when the business of a company is conducted in a fashion intended to deliberately deceive and defraud its creditors.
The Fraudulent Trading offence, created by the Companies Act 2006 (‘the Act’), is now considered by John Veale of Kangs Solicitors.
The team at Kangs Solicitors has vast experience and is highly regarded nationwide for assisting clients facing serious crime allegations of every nature, including those involving:
- fraud, money laundering and other offences under the Companies Act 2006.
- Director Disqualifications Proceedings
- all aspects of insolvency and bankruptcy.
Our team is led by Hamraj Kang who is recognised as a leading expert in the field. He is one of only two solicitors nationally to be ranked as a ‘star individual’ for five consecutive years in the legal directory Chambers & Partners.
Other members of the team are ranked in the Legal 500 and also ranked in Chambers & Partners.
For an initial no obligation discussion, please call our Team at any of our offices detailed below:
The Relevant Law | Kangs Fraudulent Trading Defence Solicitors
Section 993 of the Act provides that the offence of Fraudulent Trading is committed where:
- any business of a company is carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, and
- in such circumstances, every person who is knowingly a party to the carrying on of the business in that manner commits an offence.
This applies whether or not the company has been, or is in the course of being, wound up.
Penalties Upon Conviction | Kangs Criminal Defence Lawyers
Section 993 of the Act also provides thata person guilty of an offence under this section is liable on conviction:
- before a Crown Court, to imprisonment for a term not exceeding ten years and/or a fine.
- before a Magistrates’ Court, to imprisonment for a term not exceeding twelve months and/or a fine not exceeding the statutory maximum.
Additionally, any director of a defaulting company, or other person(s) seen to be operating the company ‘behind the scenes’, commonly known as ‘De Facto or Shadow’ directors will, more than likely, also be subjected to Director Disqualification Proceedings designed to prevent their future participation in the running of the affairs of any company.
Who Can I Contact for Advice & Help? | Kangs Fraud Offences Defence Solicitors
If you are subject to an investigation by the Criminal Investigation Team of the Insolvency Service, the police, other regulator or investigation team such as Trading Standards, it is essential that you seek expert advice and assistance immediately.
Please do not hesitate to contact the team at Kangs Solicitors through any of the following who will be pleased to speak to you: