ABSTRACT
There is no express requirement in the statute for a causal link between the wrongful trading and the loss to the creditors. In Cohen v Selby,79 there was a suggestion that it might not be necessary to establish such a connection. In Re Continental Assurance,80 however, Park J made it clear that issues of causation would be relevant in calculating the amount of the contribution whether or not causation formed part of the substantive structure of s 214. In that case, even if a finding of wrongful trading had been made, no loss was caused to the creditors by the delay in going into liquidation, since the insolvency was largely the result of events earlier in the trading life of the company and no further net loss had been caused by the alleged delay. In Re Brian D Pierson,81 it was held that issues of remoteness of causation entered into the contribution calculation and the contribution ordered was reduced to take account of the fact that the worsening of the company’s position was increased by factors outside the directors’ control or reasonable anticipation.
