The European initiative on wrongful trading

Considers developments in Europe to deal with the issue of wrongful trading by the management of companies, where continued trading in the face of financial difficulty deepens indebtedness and reduces the assets available for the satisfaction of claims. Discusses the evolution of the European Union's company law harmonisation initiative and proposals for the recognition of an insolvency element in the consultation paper issued by the Group of High Level Company Law Experts in 2002. Explores the liability regimes in the UK, France, Germany, the Netherlands and Spain, and the issues to be addressed to formulate a common position on the situations that can amount to wrongful trading.