What might be a consequence of wrongful trading for a director?

In the context of wrongful trading, when a director allows a company to continue trading while knowing that it is insolvent or should recognize that it is heading towards insolvency, they can face significant personal consequences. One of the most severe outcomes for directors involved in wrongful trading is the imposition of personal financial penalties.

These penalties are designed to hold directors accountable for behaviors that exacerbate a company's financial difficulties and protect the interests of creditors. If a director is found to have failed in their duty to prevent wrongful trading, they may be required to contribute to the company’s assets, which can translate into losing personal assets or facing monetary sanctions.

The other options do not align with the implications of wrongful trading. While profit generation, financial gain for creditors, and increased trust from shareholders might sound beneficial, they are not realistic outcomes of wrongful trading—a situation that typically leads to legal repercussions and a loss of trust among stakeholders rather than any financial benefit or improved credibility.