Companies Act 2014 section 1346

Power of court to stay or restrain proceedings

Section 1346 deals with the court's power to pause or prevent legal proceedings against a company (and, where a creditor applies, against its contributories) during the period between the filing of a winding-up petition and the making of a winding-up order.

• The court may stay or restrain legal actions against a company once a winding-up petition has been presented but before a winding-up order is made.
• This provision applies specifically to companies registered under the relevant chapter of the Act (joint stock companies registered under the Companies Act 2014).
• Where the application to stay or restrain proceedings is made by a creditor, the court's power extends beyond the company itself to cover actions against any contributory of the company.
• A contributory is a person who has contributed, or is liable to contribute, capital to the company.