(1)A person is guilty of an offence if he is knowingly a party to the carrying on of a business to which this section applies.
(2)This section applies to a business which is carried on—
(a)by a person who is outside the reach of section 458 of the Companies Act 1985 (c. 6) or Article 451 of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032) (N.I. 6)) (offence of fraudulent trading), and
(b)with intent to defraud creditors of any person or for any other fraudulent purpose.
(3)The following are within the reach of section 458 of the 1985 Act—
(a)a company (within the meaning of that Act);
(b)a person to whom that section applies (with or without adaptations or modifications) as if the person were a company;
(c)a person exempted from the application of that section.
(4)The following are within the reach of Article 451 of the 1986 Order—
(a)a company (within the meaning of that Order);
(b)a person to whom that Article applies (with or without adaptations or modifications) as if the person were a company;
(c)a person exempted from the application of that Article.
(5)“Fraudulent purpose” has the same meaning as in section 458 of the 1985 Act or Article 451 of the 1986 Order.
(6)A person guilty of an offence under this section is liable—
(a)on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum (or to both);
(b)on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).
(7)Subsection (6)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.