Wrongful trading
The wrongful trading provisions are contained in sections 214 and 246ZB of the Insolvency Act 1986 for liquidation and administration respectively in Great Britain and Article 178 of the Insolvency (Northern Ireland) Order 1989 for liquidation in Northern Ireland. This measure applies when the court is considering whether a director should make a contribution to the assets of a company in liquidation or administration. It provides that the court will not take into account any worsening of the company’s, or its creditors’, financial position during the period of suspension of liability.