Companies Act 1993

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
135 Reckless trading

A director of a company must not—

(a)

agree to the business of the company being carried on in a manner likely to create a substantial risk of serious loss to the company’s creditors; or

(b)

cause or allow the business of the company to be carried on in a manner likely to create a substantial risk of serious loss to the company’s creditors.