Hello everyone! I am taking the LPC and have a to submit a practical legal research memorandum. Does anyone can give me any ideas of where to look or what keywords to use?
Here's a summary of the facts of the question:
We act for S who are former auditors of E Ltd. E Ltd is in liquidation and it's liquidator has brought an action for fraudulent trading against a director of E Ltd. The proceedings are regarding the director's dishonesty in running the company. The liquidator now claims that S were involved in the fraudulent trading. The liquidator wants to draw S into the action by way of contribution proceedings.
Am I right to search for fraudulent trading under s.213 Insolvency Act?
Also, do you know which search terms I could look for to answer the following:
- Can the liquidator add S in the claim of fraudulent trading against the director?
- What the liquidator needs to prove
- Could S defend on the basis that any dishonesty was on the part of the director alone?
Any ideas would be a great help. Thank you!
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- Thread Starter
- 13-02-2018 00:44
- 13-02-2018 09:51
Do you need to search for words? If so maybe "fraudulent trading accessory liability", or "fraudulent trading knowingly parties"? [The latter on the basis that 'knowingly parties' is the phrase used in the Act? In reality I would just search for cases discussing s. 213(2) of the Act, and I would find Morris v Bank of India and that would answer the substantive law questions.
I don't know if contribution proceedings means something different on the LPC than it does to me. A claim for contribution is brought by a defendant, not a claimant. The liquidator should just apply to join the auditors as parties under CPR 19.2(2)(a) if the claim form has been served.
- Thread Starter
- 14-02-2018 19:21
Thank you for the help! I submitted my assessment yesterday, we will see how it goes!