Section 213 liability does not rest exclusively with directors or those managing the insolvent business
The recent UK Supreme Court judgment in Bilta (UK) Ltd (in liquidation) and others v Tradition Financial Services Ltd [2025] upheld the Court of Appeal’s broad interpretation of section 213 of the Insolvency Act 1986, deciding that its scope is not limited to directors or those otherwise implicated in the management of the fraudulent business. Third parties knowingly dealing with the fraudulent business are also at risk.
The decision also addressed the issue of how the “reasonable diligence” test in section 32 of the Limitation Act applies, where a claimant company has been struck off and the question arises as to when the company…