Can a company continue to trade even if its insolvent?
Yes. But only as a part of a formal insolvency procedure or restructure agreed by all creditors. In these circumstances directors should not continue to trade until expert advice has been received from an Insolvency Practitioner. A director should be aware that he may become personally liable for any debts incurred after a time when he knew or ought to have known that the company was insolvent.
