Companies Act 2014 section 518

Duty to act in utmost good faith

Section 518 requires that anyone presenting an examinership petition to the court, or any independent expert preparing a report in connection with such a petition, must act with the utmost good faith and disclose all material information.

• The court may refuse to hear, or may stop hearing, an examinership petition if it believes the petitioner or independent expert has not acted in utmost good faith.
• All information available to the petitioner or independent expert that is material to the court's exercise of its powers must be disclosed.
• Any other failure to act with absolute honesty and sincerity in preparing or presenting the petition or the expert's report may also trigger the court's refusal.
• This obligation applies to the entire process, covering both the preparation and the presentation of the petition and the preparation of the independent expert's report.