Directors continue business, defrauding creditors
The directors must have acted dishonestly
The directors must have intended to make a gain for themselves
If Criminal prosecution Max 10 years in prison and/or a fine
If Civil action (insolvent liquidation) 'make such contribution to the company's assets as the court thinks proper'
When can't prove fraudulent trading
Directors continue business - knowing (or should have) no reasonable prospect of avoiding insolvent liquidation
Not taking reasonable steps to avoid losses for creditors
Remedy is civil - 'make such contribution to the company's assets as the court thinks proper'