Intent to defraud the italian creditor, Business Law and Ethics

Intent to defraud the Italian creditor:

The company owed money to trade creditors and also had outstanding against it a large claim for breach of contract which it disputed (though the claimant had obtained judgement in his favour in the Italian courts).  The directors used the remaining assets to discharge the trade debts.  When the company went into liquidation the liquidator sought a declaration that the directors had carried on business with intent to defraud the Italian creditor.

In paying the other debts the directors had "carried on business" but this was not a case of "intent to defraud" the Italian claimant, whose claim they did not accept.  (The issue of possible fraudulent preference of the trade creditors was not raised).

If the liquidator considers that there has been fraudulent trading he should apply to the court for an order that those responsible (usually the directors) are liable to make good to the company all or some specified part of the company's debts.  If the liquidator does not do this a creditor might be able to obtain an order that those at fault must pay the creditor direct: Re Cyone Distributors (1967).  The liquidator should also report the facts to the Attorney General so that he may institute criminal proceedings.

Posted Date: 1/15/2013 5:50:42 AM | Location : United States







Related Discussions:- Intent to defraud the italian creditor, Assignment Help, Ask Question on Intent to defraud the italian creditor, Get Answer, Expert's Help, Intent to defraud the italian creditor Discussions

Write discussion on Intent to defraud the italian creditor
Your posts are moderated
Related Questions
What is hire purchase?

State the world rate of interest We have assumed that the world rate of interest only falls to equal R 2 . At point B, therefore, the domestic rate of interest is below the wo

Define the principle of prescription Prescription   (res  nullius-an  asset susceptible of acquisition but presently under the ownership or sovereignty of no legal person). Pr

what ethical issue relate to nuclear energy industry

Role of the Courts The role of the court system in Canada varies. Due to the numerous jurisdictions and different government levels involved, the courts are often asked to inte

Registration of Resolutions: By S.143(1) a printed copy of the following resolutions shall, within 30 days after the passing thereof, be delivered to the registrar for registr

HUMAN RIGHTS   Human rights are something which we frequently hear about, discuss, and have probably read a great deal on as well. Most political and social discussions revolve ar

Explain International law on sir creek issue The issue concerning Sir Creek is of great importance for both India and Pakistan. The dispute does not concern the division betwee

please explain these topic to me in detail as soon as possible so that i can make my assignment accordingly

Former Assistant Treasurer Bill Shorten has cited estimates, based on ATO expertise, that there are 6,000 phoenix operators in Australia. It is recognised that this estimate is a ‘