In this seminar, the provisions of the Companies Act (Cap. 386 of the laws of Malta) relative to Wrongful Trading and Fraudulent Trading will be examined from both a legal and practical perspective. The context within which the offences of Wrongful Trading and Fraudulent Trading may arise will serve as a backdrop for the ensuing explanation on salient aspects of these offences including:
- Duties of directors of a company generally, but more so in the case of a company in financial difficulty
- Defining the terms Wrongful Trading and Fraudulent Trading
- Rationale underpinning these offences – what and whom do these provisions seek to protect?
- Procedural aspects of instituting and defending an action for Wrongful Trading or Fraudulent Trading
- Consequences of the offences of Wrongful Trading or Fraudulent Trading
- A brief analysis of local jurisprudence on the subject
- The interplay between the offences of Wrongful Trading and Fraudulent Trading and other offences under our Companies Act
- The immediate impact of COVID-19 on the application of the provisions under review.
In an economically challenging time during which the necessity of preserving economic value and the importance of acting in the best interests of the company could not be more acute, this session comes as a timely reminder as to the duties of directors and other officers when a company finds itself on the brink of, or already in the midst of, a financially troublesome situation. Such individuals must be mindful of the legal boundaries within which they may act, or run the risk of being found to have allowed, or engaged in, Wrongful Trading or Fraudulent Trading.Download Event Brochure