Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, how many prosecutions have been carried out of company directors continuing to trade when insolvent in each of the last five years.

While “continuing to trade whilst insolvent” is not a criminal offence in itself, under s993 Companies Act 2006 (and previously under s458 Companies Act 1985)

“If any business of a company is carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, every person who is knowingly a party to the carrying on of the business in that manner commits an offence.”

The table below provides the number of persons prosecuted for an offence of fraudulent trading in respect of an individual company for the last five financial years, irrespective of verdict.

The offence may be committed by a person other than a director and separate records of the number of directors prosecuted are not centrally collated.