Ow does the duty of creditors interest relate to wrongful trading?


-Introduce the topic.

-Have a background, describe the duties. I.e. directors duties, s.214.

-Describe aims of dissertation.

-Lay out structure of chapters. I.e. Chapter 2 ....., Chapter 3 ......

-Mention analytic structure. Methodology.

Chapter 2:

-Describe duties and wrongful trading

-DO NOT do just an explanation/comparison.

-Conisder difficulties with topics. I.e. one better than the other between duties and tradings.

-Who brings the duties?

Chapter 3:

-Analysis chapter.

-Bring both together, the ways of resolving the problems with the duty and wrongful trading.

-Gather sources.

-Important topics; 1) Does the duty compensate for wrongful tradings?? 2) Does it overlap?

General (throughout the dissertation)

-Wrongful tradingIs creditors interest necessary due to wrongful trading. (Prof. Sealy)

-Cambridge Law Journal 1988, p.175.

-The duties.

-What wrongful trading actually is.

COMPARE problems with duty of creditors interest with wrongful trading.

-Integrate a discussion at all times.


Companies Act 1985

Insolvency Act 1986

Directors Debts, s.214


Brady v Brady (1988) 3 B.C.C 585

Kinsela v Russell Kinsela Pty Ltd (1986) 4 A.C.L.C 215

Liquidator of West Mercia Safetywear v. Dodd (1988) 4 B.C.C. 30.

Lonrho Ltd v. Shell Petroleum Co. Ltd [1980] 1 W.L.R. 627.

Percival v. Wright [1902] 2 Ch. 421.

Re Horsley & Weight Ltd [1982] 3 All E.R. 1045.

Walker v. Wimborne (1976) C.L.R. 1.

Winkworth v. Edward Baron Development Ltd [1986] 1 W.L.R. 1512, 1516. (Prof. Sealy judgement)


Prentice,  Creditors Interests and Directors Duties (1990) 10 O.J.L.S. 265.

Prentice,  Directors, Creditors and Shareholders in E. McKendrick (ed.), Commercial Aspects of Trusts and Fiduciary Obligations (Oxford University Press, Oxford, 1992), 79.

Ross, M  Directors Liability on Corporate Restructuring in C. Rickett (ed.), Essays on Corporate Restructuring and Insolvency (Brookers, Wellington, 1996), 177.

Van der Weide,  Against Fiduciary Duties to Corporate Stakeholders (1996) 21 Delaware Journal of Corporate Law 27.

Keay, A The Duty of Directors to Take Account of Creditors Interest: Has It Any Role to Play? (2002) Journal of Business Law 379

Keay, A Wrongful Trading and the Liability of Comapny Directors: a Theoretical Perspective. (2005) Legal Studies 431.

Prof. SealyCambridge Law Journal 1988, p.175 (important)