The Twighlight Zone
The penalties for directors if their insolvent companies carry on trading vary vastly from country to country, from nothing to a jail term. With more companies going global, unravelling local insolvency law is more important than ever, says John Willcock
Company directors who allow their business to carry on trading when insolvent face a wide range of penalties depending on which country they operate in. In the US, it can seem that nobody minds much. In the UK, they may be penalised for ‘wrongful trading’. In France they could go to jail.
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