What is the term for trading conducted with the intent to defraud creditors?

The term "fraudulent trading" specifically refers to trading that is conducted with the intention to defraud creditors. This typically occurs when a company's directors knowingly engage in business activities that they know will lead to debts that cannot be repaid, thereby intentionally misleading creditors about the company's financial health. Fraudulent trading is considered a serious offense because it undermines the trust and integrity required in commerce, and it can result in significant legal penalties for the individuals involved.

In contrast, wrongful trading involves a situation where a company continues to trade when its directors know or ought to have known that it could not avoid going into liquidation, but it does not necessarily carry the intent to defraud creditors. Money laundering refers to processes that make illegal gains appear legitimate and is not specifically about trading practices. Directorial misconduct covers a broader range of inappropriate actions by directors that may not specifically involve trading with the intent to defraud creditors.

Thus, fraudulent trading is distinct because it explicitly centers on the intention to deceive creditors, making it the most accurate term for the described scenario.