Trading while insolvent exposes a company and its directors to some of the most serious consequences in commercial law, from personal liability and clawback of transactions to disqualification and, in egregious cases, allegations of fraud. The hazard is that the line is crossed gradually, often without a clear moment of decision. This report explains the consequences of insolvent trading in your chosen jurisdiction and industry: the framework defining when trading becomes wrongful, the scenarios that attract liability, the warning indicators that the threshold is near, hedged ranges for the personal and corporate consequences, the controls that demonstrate proper conduct, and the point at which counsel and insolvency practitioners must be engaged.
Reference material for informed readers, not advice.
