What happens when a charity is insolvent? - Begbies Traynor Group: "But in the same way that, under certain circumstances, a limited company’s directors may be held responsible for some or all of the company’s debts on liquidation, directors of these charitable structures can also become liable if they have failed to maximise creditor interests due to negligence or wrongful behaviour, including:
Transactions at an undervalue
Wrongful trading
Breach of trust
Fraud