(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.
10 Participating in fraudulent business carried on by company etc.: penalty
(1) In Schedule 24 to the Companies Act 1985 (punishment of offences), in column 4 of the entry relating to section 458 of that Act, for “7 years” substitute “10 years”.
(2) In Schedule 23 to the Companies (Northern Ireland) Order 1986 (punishment of offences), in column 4 of the entry relating to Article 451 of that Order, for “7 years” substitute “10 years”.
Obtaining services dishonestly
11 Obtaining services dishonestly
(1) A person is guilty of an offence under this section if he obtains services for himself or another—
- (a) by a dishonest act, and
- (b) in breach of subsection (2).
(2) A person obtains services in breach of this subsection if—
- (a) they are made available on the basis that payment has been, is being or will be made for or in respect of them,
