Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Fraudulent trading definition

What does Fraudulent trading mean? In practice, fraudulent trading means carrying on a company’s business with intent to defraud creditors or for any fraudulent purpose, exposing those knowingly involved to personal liability and prosecution. In England & Wales and Scotland it is a statutory concept: a civil claim lies under the Insolvency Act 1986, s 213 in a winding up (and the parallel administration provision, s 246ZA), enabling the court, on the liquidator’s or administrator’s application, to order persons knowingly party to the fraud to contribute to the company’s assets. There is also a UK‑wide criminal offence under the Companies Act 2006, s 993. Key...

Fraudulent trading under section 993 Companies Act 2006: offence elements (two limbs), dishonesty (Ivey), R v Hunter guidance, corporate liability (ECCTA 2023), sentencing and ancillary orders

Published by a LexisNexis Corporate Crime expert

Practice notes

This Practice Note sets out the constituent parts of the offence of Fraudulent trading in section 993 of the Companies Act 2006, and, drawing on case law, shows how the courts construe those parts. It covers the sanctions for fraudulent trading and potential sentences, reflecting any pertinent considerations and aggravating aspects. It also addresses ancillary orders available on conviction...

Fraudulent trading

A company commits the offence of fraudulent trading contrary to section 993 of the Companies Act 2006 (CA 2006). Section 9 of the Fraud Act 2006 (FrA 2006) criminalises fraudulent trading by sole traders, partnerships, trusts and other non-corporate entities. See Practice Note: Fraudulent trading under the Fraud Act 2006. The CA 2006, s 993 offence is triable either in the magistrates' court or in the Crown Court...

Elements of CA 2006 offence of fraudulent trading

The offence comprises two limbs:

carrying on a company's business with Intent to defraud creditors of the company or the creditors of any other person, which in turn entails:
- conducting the business of a company
- with intent to defraud creditors of...

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Web page updated on 21/05/2026

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