April 2010 - Directors, Reckless Trading: 'Honest Belief' Irrelevant

One of the nightmare scenarios facing any company director is being held personally liable for the debts of his/her company.

Commonly, a creditor of the company (or the liquidator thereof acting for the general body of creditors) claims from the director personally on the basis that he/she was party to "fraudulent or reckless" trading.