Companies Act 2014 section 545

What this Chapter contains

Section 545 provides an overview of the provisions contained in this Chapter, which deals with the liability of third parties (such as guarantors) for debts of a company that is in examinership, and what happens to that liability when a compromise or scheme of arrangement takes effect.

• The Chapter addresses what happens to a person's liability under a guarantee (or otherwise) for a company's debt when a compromise or scheme of arrangement is approved during examinership
• It restricts the ability of a creditor to enforce that liability against a guarantor unless a specified procedure is followed
• It includes provisions preserving existing protections under section 520(4)(f) and situations where a guarantor's liability is discharged by operation of law
• The provisions originate from the Companies (Amendment) Act 1990 and have been reorganised into separate sections for clarity