Problem:
The Directors of Eggs company decsribed as a very successful company have an action for fraudulent trading pending against them.
The Articles of Association of Eggs Company 9.7,state that "The company will indemnify Directors against any liability incurred whilst acting as directors of the company, including (but not lilmited) to any liability arising from negligence, default or breach of duty or trust, such fines imposed against a Director in relation to proceedings brought against him/her and/or any legal expenses incurred by a Director in defending any claim whatsoever".
I would like help with;
1. The law relating to Fraudulent Trading
2. The consequences for the directors if the fraudulent claim against them is successful.
3. Whether the Directors can rely on Article 9.7 for Eggs Company to indemnify them for Court costs.
4. Whether the Directors can rely on Artice 9.7 that Eggs Company will indemnify them for legal expenses incurred in defending the claim.
The difficulty for me is that it does not appear as if Eggs Company has gone in to receivership, so there seems to be no liquidation or winding up of the company. I would be able to ansew this essay if the company was in liquidation.