"Wrongful trading" in England and Hungary: a comparative study

Fabók, Z ORCID: https://orcid.org/0000-0002-6481-0358, 2017. "Wrongful trading" in England and Hungary: a comparative study. In: Gant, JLL ORCID: https://orcid.org/0000-0002-5789-8742, ed., Harmonisation of European insolvency law. Nottingham: INSOL Europe, pp. 83-111. ISBN 9780993189753

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Abstract

In the last decades, the idea of harmonization of rules on directors' liabilities has not been indifferent for the European legislator. Although relatively little material efforts have been made in this regard so far, it seems to be instructive for the future to examine one specific example of transplantation of the wrongful trading concept. Apparently inspired by the English model, Hungary implemented (or more precisely: transplanted) the wrongful trading rule in 2006.
To begin with, the paper summarises some initiatives of harmonisation of the directors’ liability in the history of the European Communities. Thereafter, the function of wrongful trading concept is discussed. In the fourth (and substantive) section, a comparative analysis of the liability for wrongful trading in England and Hungary is presented. Subsequently, the diverging tendencies in the case law are discussed. In the sixth part, some possible reasons are considered why wrongful trading liability plays a more prominent (and different) role in Hungary than it does in England. In the conclusion, we should be able to answer some questions. Can the Hungarian provisions on liability for wrongful trading qualify as "legal transplant"? Has the adoption of the English concept of wrongful trading resulted in "harmonised" rules on directors' liability for wrongful trading in England and Hungary?

Item Type:	Chapter in book
Creators:	Fabók, Z.
Publisher:	INSOL Europe
Place of Publication:	Nottingham
Date:	2017
ISBN:	9780993189753
Divisions:	Schools > Nottingham Law School
Record created by:	Jonathan Gallacher
Date Added:	03 Nov 2017 15:42
Last Modified:	03 Nov 2017 15:42
URI:	https://irep.ntu.ac.uk/id/eprint/31964

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