Companies Act 2014 section 558ZG

Circumstances in relation to which subsequent provisions of Chapter have effect

Section 558ZG defines the scope of third-party liability that the remaining sections of Chapter 7 deal with, where a small or micro company is undergoing a rescue process.

• This section sets the scene for the rest of the chapter by defining key terms: the "liability", the "third person", the "debt", and the "creditor"
• The "liability" is the obligation of any person (the "third person") who is liable for a company's debt, whether under a guarantee or otherwise
• The "debt" is an amount owed by an eligible company — one to which a process adviser has been appointed — to another party known as the "creditor"
• The rules in the subsequent sections are subject to an exception set out in section 558ZH(2)