Iscuss critically the role of wrongful trading provisions in insolvency law.
Discuss critically the role of wrongful trading provisions in insolvency law.
2.Provides some background and origin to wrongful trading provision (section214 by the insolvency Act 1986), including a brief consideration of its aim, rationale and operation.
3.Comparative Wrongful Trading Provision in UK and Asia (Singapore/Hongkong)
4.Disadvantages of wrongful trading provision( Arguments) and evaluate the arguments.
a? Liability of company director
-Discouraging people from becoming directors
-Director become more risk-averse
a? Creditor should protect themselves
a? Court lack experience
(put some cases if available)
5.Advantages of wrongful trading provision(support provision) and investigate some of the reasons given for supporting the provisions
a? Commercial Morality
a? Absence of Bargaining Power
a? Distribution fairness
a? Achieving Balance
(put some case if available)
6.Conclusion the role of wrongful trading Provision