Wrongful trading claim: burden of proof | Practical Law

Wrongful trading claim: burden of proof | Practical Law

The High Court has held that the burden of proof in a wrongful trading claim is on the director against whom the claim is made, if he knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation.

Wrongful trading claim: burden of proof

Practical Law UK Articles 9-618-8548 (Approx. 3 pages)

Wrongful trading claim: burden of proof

by Clifford Chance LLP and Practical Law Restructuring and Insolvency
Published on 24 Sep 2015
The High Court has held that the burden of proof in a wrongful trading claim is on the director against whom the claim is made, if he knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation.