Test yourself

Limited companies are safe to run for their owners, as they have legal personality. They are separate from their owners and the owners are not liable for their companies’ debts.
There are, however, some exceptions specified in the Insolvency Act 1986.

Read provision 213 of the Act which explains what fraudulent trading is and choose the correct word to fill in the gaps. You can use one word twice.

Fraudulent trading.
(1) If in the (1 p.) of the (1 p.) up of a company it appears that any business of the company has been carried on with (1 p.) to defraud creditors of the company or (1 p.) of any other person, or for any fraudulent (1 p.) , the following has effect.

(2) The (1 p.) , on the application of the (1 p.) may declare that any persons who were knowingly parties to the carrying on of the (1 p.) in the manner above-mentioned are to be liable to make such (1 p.) (if any) to the company’s (1 p.) as the (1 p.) thinks proper.