Facts: One of the directors admitted knowing in February 1987 that the liquidation of the company was inevitable. He put forward, as justification for its continuing to trade until October of that year, that it enabled an advantageous realisation of the company’s stock of perishable fruit in cold store.
Held: Knox J – directors were liable to contribute to the company’s assts. The directors had the intimate knowledge of the business and must have known that turnover was well down on the previous year. Furthermore, s.214 refers not only to facts which they knew but also what they ought to know and/or, which they ought to ascertain.