Companies Act 2014 section 210

Civil sanctions where opinion as to solvency stated in declaration without reasonable grounds

Section 210 deals with the civil sanctions that may be imposed on a director who makes a solvency declaration under the summary approval procedure without having reasonable grounds for the opinion expressed in that declaration.

• A director who makes a solvency declaration without reasonable grounds may be held personally liable, without any limitation, for all or some of the company's debts or liabilities
• An application for such a declaration of personal liability may be brought by a liquidator, creditor, member, contributory of the company, or by the Corporate Enforcement Authority
• If the company is wound up within 12 months of the declaration and its debts are not paid in full within 12 months of the winding up commencing, it is presumed that the director lacked reasonable grounds for the solvency opinion
• Where the court makes a declaration of personal liability, it may issue further directions as it considers appropriate to give effect to that declaration

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