What is the ratio in Re Produce Marketing Consortium?

Directors are liable for wrongful trading under s.214 when they continue trading knowing the company cannot avoid insolvent liquidation, using both subjective and objective tests.

What did the court decide in Re Produce Marketing Consortium?

Knox J held both directors personally liable for wrongful trading and ordered them to contribute to the company's assets.

Why is Re Produce Marketing Consortium important for wrongful trading?

It was the first successful s.214 case, establishing key precedents for when directors must cease trading and the consequences of wrongful trading.

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