(1)If any business of a company is carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, every person who is knowingly a party to the carrying on of the business in that manner commits an offence.
(2)This applies whether or not the company has been, or is in the course of being, wound up.
(3)A person guilty of an offence under this section is liable—
(a)on conviction on indictment, to imprisonment for a term not exceeding ten years or a fine (or both);
(b)on summary conviction—
(i)in England and Wales, to imprisonment for a term not exceeding twelve months or a fine not exceeding the statutory maximum (or both);
(ii)in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum (or both).
Cases considering section 993 (9)
[2025] UKSC 18 · 7 May 2025Interprets
The criminal provision applies to every person knowingly party to carrying on a company’s business with intent to defraud or for a fraudulent purpose. Its similar language did not create ambiguity or exclude outsiders. (see paras [37]–[39])
Unlike the civil remedy, the criminal offence applies whether or not the company is being wound up. (see para [37])
The subsection prescribes criminal penalties. The seriousness of those penalties did not justify narrowing clear statutory words where liability requires dishonest knowledge. (see paras [37]–[38])
[2026] EWCA Crim 462 · 24 March 2026Interprets
Section 993 is interpreted as focusing on the fraudulent carrying on of a company’s business. The offence is not confined by the restrictions applicable to conspiracy to defraud, and fraudulent purpose has its ordinary meaning. (see paras [31]-[43])
Section 993(1) requires proof that a company’s business, or part of it, was carried on for a fraudulent purpose, that the defendant was knowingly a party to carrying on the business in that manner, and that he acted dishonestly. The offence does not require deception or separately identified misconduct. (see paras [31]-[43])
Section 993(3) is used to identify the maximum sentence for conviction on indictment. It provides the statutory ceiling against which sentencing was considered, but the judgment does not otherwise construe the subsection. (see paras [4]; [92])
[2021] EWCA Crim 1785 · 26 November 2021Interprets
The court construed section 993 as creating a distinct second-limb fraudulent-purpose offence, not confined by common-law conspiracy-to-defraud limitations. It identified the statutory ingredients and upheld the convictions on that basis (see paras [84]-[99]; [109]-[140]).
The second limb applies where a company business is carried on for any fraudulent purpose and the defendant knowingly participates. Dishonesty is essential, but deception, an actual victim and completed harm are not necessary elements (see paras [109]-[140]).
What each judgment says about section 993 is in the case-law panel in the full Act.
1264.This section restates section 458 of the 1985 Act, but in doing so increases the maximum sentence for the offence from seven years’ imprisonment to ten years.