Which of the following options best describes the legal remedy available to creditors in cases of wrongful trading?

In cases of wrongful trading, the correct legal remedy available to creditors is that they may pursue the directors for losses. Wrongful trading occurs when company directors continue to trade while knowing that the company is unable to pay its debts and thereby increase the potential losses to creditors.

When a company is found to have engaged in wrongful trading, the directors can be held personally liable for the losses suffered by creditors during the period of wrongful trading. This means that creditors have the opportunity to claim compensation directly from the directors, based on the additional losses incurred due to the directors’ failure to take appropriate action to minimize the company's financial troubles.

This approach serves as a deterrent against irresponsible management practices and encourages directors to act in the best interest of creditors when a company is facing financial difficulties. By holding directors accountable for their decisions, the legal system promotes more responsible corporate governance.

The other options do not accurately reflect the remedy available to creditors in cases of wrongful trading. For instance, compensation from the company would not stem directly from wrongdoing by the directors, and divorcing oneself from the company doesn't address the legal accountability of directors. Similarly, seeking a reduction in liabilities does not apply in the context of pursuing directors for wrongful trading losses.