Companies Act 2014
Personal liability for debts of company subject to restriction | ||
836. (1) This section applies where a company— | ||
(a) has received a notice under section 825 , | ||
(b) after receipt of the notice, carries on business without the requirements of section 819 (3) being fulfilled within a reasonable period of receipt, | ||
(c) is subsequently wound up, and | ||
(d) at the time of commencement of the winding up is unable to pay its debts (taking into account its contingent and prospective liabilities). | ||
(2) On the application of the liquidator or any creditor or contributory of the company, the court may declare that a person shall be personally liable, without any limitation of liability, for all or part of the debts or other liabilities of the company as the court directs if that person— | ||
(a) was an officer of the company while it carried on business without the requirements of section 819 (3) being fulfilled within a reasonable period of receipt of the notice referred to in subsection (1)(a), and | ||
(b) knew or ought to have known that the company had received the notice. | ||
(3) In any proceedings against a person under this section, the court may, if, having regard to the circumstances of the case, it considers that it is just and equitable to do so, grant relief— | ||
(a) in whole or in part from the liability of that person under this section, and | ||
(b) subject to such conditions as the court sees fit. |