Fraudulent trading legislation has extraterritorial effect

A company in liquidation will not be stopped, on the basis that it was a party to wrongdoing complained of, from bringing claims against directors and other parties for wrongdoing, where the company can be said to be a victim of the wrongdoing.

Bilta (UK) Limited (in liquidation) (Bilta), acting by its liquidators, contended that it was a vehicle for carousel (VAT) fraud and was left with VAT liabilities in excess of £38m.

Through its liquidators, Bilta brought claims against its two directors (one of whom was sole shareholder) and other parties, including Jetivia S A (a company incorporated in Switzerland) (Jetivia) and Jetivia’s director, Mr Urs Brunschweiler, who resides in France. The claims were made under section 213 of the Insolvency Act 1986 for fraudulent trading, as well as conspiracy and dishonest assistance…

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