Chapter 2: Formation, Administration and Dissolution of Companies
Part B: Incorporation and legal status of companies

R19: Reckless trading or trading under insolvent circumstances

  • (1) The Commission may issue a notice to show cause contemplated in section 22 (2) in Form CoR 19.1, which must clearly set out the grounds upon which the Commission has formed the requisite belief that the notice is justified.
    • (2) If a person who has received a notice in Form CoR 19.1 provides information to the Commission within 20 business days after receiving the notice, the Commission, after considering that information, must issue either-
      • (a) a notice in Form CoR 19.2 accepting the information, and confirming the company's right to continue carrying on its business activities; or
        • (b) a compliance notice, as contemplated in section 22 (3).

        Related Regulations

        No related regulations.

        Related Sections

        s22: Reckless trading prohibited

        Related Notes

        No related note.

        Related Forms

        CoR19.1: Show Cause Notice, to be issued by the Commission concerning reckless or insolvent trading
        CoR19.2: Notice accepting information