Case Lets:

Ahmed and Aslam are directors of Bouncy Castles LLC. Tim is not involved in the running of the business as he is too busy with other business ventures. Three months ago Ahmed was told by the companys accountant that the company is facing mounting debts and that its assets and projected income is not sufficient to pay them. In spite of knowing this Ahmed orders another 10 Bouncy Castles. Three months later, the company goes into compulsory liquidation.

Required:

1.Explain what is meant by:

A.Fraudulent Trading; and

B.Wrongful Trading

2. State whether Ahmed or Aslam are liable for fraudulent or wrongful trading.