A Director Will Be Liable for Allowing a Company to Trade

question 66

Multiple Choice

A director will be liable for allowing a company to trade whilst insolvent if at the time the insolvent trading occurred:

• A)The director relied reasonably on the advice of others as to whether or not the company was solvent.
• B)The director had a serious illness and did not participate in the management of the company.
• C)The director had reasonable grounds to assume the company would remain solvent.
• D)The director was optimistic about the company's chances of trading its way out of insolvency.

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Definitions:

Proposal Specifics

Refers to the detailed information or conditions outlined in a proposal that addresses the specifics of a project, service, or agreement.

Imagery

The use of vivid or figurative language to represent objects, actions, or ideas.

Grandmother

A Grandmother is a woman who is the mother of one's parent, often playing a significant role in family structure and traditions.

Parable

A brief story used to illustrate a point.