Fraudulent trading refers to the act of carrying on a business with the intent to defraud creditors or for any other fraudulent purpose. This includes accepting money from customers when the company is unable to pay its debts and meet its obligations under the contract. Such conduct is a criminal offence.
Lifting the veil of incorporation is an exceptional legal process where the separate legal entity principle of a corporation is disregarded to hold its members or directors personally liable, often applied in cases of wrongful or fraudulent trading.
