ABSTRACT
Section 213 of the Insolvency Act 1986 provides that if in the course of liquidation it appears that the business of the company has been carried on with intent to defraud creditors31 of the company or of any other person or for any fraudulent purpose, the court may order anyone knowingly32 party to carrying on that business in that manner to make such contribution to the company’s assets33 as the court thinks proper. The court may also direct that any debt owed by the company to someone guilty of fraudulent trading will be deferred until all other debts and interest thereon has been paid by the company.34
