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UK syllabus: Auditing aspects of insolvency

4.3 Penalties

Fraudulent trading

Directors can be:

 made personally liable for the debts of the company (a civil liability under the
Insolvency Act)

 disqualified as a director for between two and 15 years

 imprisoned for up to ten years.

Wrongful trading

Directors can be:

 made personally liable for the debts of the company

 disqualified as a director for between two and 15 years.

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