Companies Act 2014 section 551

Saving for cases falling within section 520(4)(f) and cases where third person discharged or released from liability

Section 551 preserves two important protections that are not overridden by the rules in Chapter 4 concerning the liability of third parties for debts of a company in examination.

• Chapter 4 does not override the freeze on enforcement of guarantees while a company is under court protection (section 520(4)(f))
• Chapter 4 does not affect any rule of law under which a creditor's own actions result in a third party being released from liability
• These savings ensure that existing legal protections for guarantors and other third parties remain intact during examinership
• The provision originates from section 25A(2) of the Companies (Amendment) Act 1990, as inserted by the Companies (Amendment) (No. 2) Act 1999