Companies Act 2014 section 247

Personal liability for company debts in certain cases

Section 247 deals with the circumstances in which the court may impose personal liability on individuals who benefited from certain arrangements with a company, where those arrangements contributed to the company's inability to pay its debts during a winding up.

• Where an insolvent company is being wound up, the court may declare that a person who benefited from a section 240(2)(a) arrangement is personally liable for the company's debts
• Personal liability may be unlimited and can cover all or a specified portion of the company's debts and other liabilities, as determined by the court
• The court will consider whether outstanding liabilities under the arrangement were discharged before the winding up commenced
• The extent of personal liability imposed will reflect how much the arrangement contributed to the company's insolvency or impeded its orderly winding up