Companies Act 2014 section 1331

Power of court to stay or restrain proceedings

Section 1331 extends the court's power to stay or restrain legal proceedings during the winding-up process of an unregistered company, so that where a creditor applies, the protection covers not only the company itself but also its contributories.

• Once a winding-up petition has been presented but before a winding-up order is made, the court may stay or restrain legal proceedings against the company.
• This power applies equally to unregistered companies being wound up under the Act.
• Where the application to stay or restrain proceedings is made by a creditor of the unregistered company, the protection extends to actions against any contributory of that company.
• This ensures that creditors can prevent individual legal actions against contributories that might disrupt the orderly winding-up process.