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United Kingdom wrongful tradingdirectors duties

Grant v Ralls

[2016] EWHC 243 (Ch)
JurisdictionUnited Kingdom
CourtHigh Court of Justice, Chancery Division (Companies Court)
Year2016
StatusBinding authority

Key Principle

Even where directors are found to have wrongfully traded under section 214 of the Insolvency Act 1986, the court will not order a contribution unless the liquidator proves that the continuation of trading actually increased the company's net deficiency, the loss caused thereby being the proper measure of any contribution.

Area of Law

General

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