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2 mins
19 Oct 2026

Evidence matters in claims for fraudulent trading

In SQN Global Ltd v Hughes and others, the High Court considered claims for fraudulent trading under section 213 of the Insolvency Act 1986 arising from the diversion of company assets and payments following a worldwide freezing order. Although the defendants were debarred from defending the claim and did not attend trial, the court emphasised that serious allegations of dishonesty must still be proved by proper evidence. The decision is a useful reminder that contemporaneous documents and reliable witness evidence remain critical, even in an effectively unopposed claim.

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