705. Consequences of doing business etc without a trading certificate
(1) If a company does business or exercises any borrowing powers in contravention of section 699, a contravention of these Regulations is committed by—
(a) the company, and
(b) every officer of the company who is in default.
(2) A person who contravenes the Regulations under subsection (1) is liable to a fine of up to level 8.
(3) A contravention of section 699 does not affect the validity of a transaction entered into by the company, but if a company—
(a) enters into a transaction in contravention of that section, and
(b) fails to comply with its obligations in connection with the transaction within 21 days from being called on to do so,
the directors of the company are jointly and severally liable to indemnify any other party to the transaction in respect of any loss or damage suffered by him by reason of the company's failure to comply with its obligations.
(4) The directors who are so liable are those who were directors at the time the company entered into the transaction.