FRAUDULENT TRADING IN CORPORATE INSOLVENCY: LEGAL DIMENSIONS, ENFORCEMENT CHALLENGES, AND POLICY IMPLICATIONS

Аннотация

Fraudulent trading, often surfacing during corporate insolvency, refers to the deliberate conduct of business with intent to defraud creditors or for other dishonest purposes. This article explores the legal framework surrounding fraudulent trading, the challenges in enforcement, and the evolving judicial attitudes across jurisdictions such as the UK, South Africa, and the EU. While legal provisions exist to protect creditors and hold directors accountable, enforcement is often hindered by evidentiary burdens and limited preventive mechanisms. This paper concludes by suggesting legal reforms and proactive regulation as essential to curbing financial misconduct and enhancing corporate accountability.