HC Deb 15 February 2001 vol 363 c271W
16. Mr. Jim Murphy

To ask the Secretary of State for Trade and Industry if he will introduce legislation to make company directors personally liable if they continue to trade while they are aware that their company is unable to honour contracts. [149017]

Dr. Howells

No. There are already provisions in the Insolvency Act 1986 under which directors of companies in insolvent liquidation may be ordered to contribute personally to the company's assets. This may arise, for example, where the company's business has been carried on with intent to defraud creditors or where the directors have carried on business when they knew or ought to have known that there was no prospect of the company avoiding liquidation.

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