Re W C Leitch Bros Ltd [1932] 2 Ch 71

Court: High Court (Chancery Division)

Facts: W C Leitch Bros Ltd continued trading despite insolvency, with a director ordering additional goods on credit. The liquidator sought to hold the director personally liable for fraudulent trading.

Issue: Is continuing to trade while insolvent, with the intent to defraud creditors, sufficient to establish fraudulent trading?

Held: Director held personally liable. The court found that continuing to trade with intent to defraud creditors constituted fraudulent trading.

Key Judicial Statement: The court observed, "Continuing to trade with the intent to defraud creditors constitutes fraudulent trading."

💡 Leveluplaw: Directors can be personally liable for fraudulent trading if they continue trading with the intent to defraud creditors.