Companies Act 2014 section 567

Application of certain provisions to companies not in liquidation

Section 567 allows creditors, contributories, and the Corporate Enforcement Authority to pursue remedies against delinquent directors and officers of an insolvent company, even where the company has not been formally wound up, typically because there are insufficient assets to cover the costs of a liquidation.

• Where a court judgment against a company remains unsatisfied or the company is proven unable to pay its debts, and the main reason it has not been wound up is insufficient assets, certain winding-up remedies can still be invoked against directors and officers
• A range of provisions normally only available during a formal liquidation — covering fraudulent trading, improper asset transfers, failure to keep adequate accounting records, and personal liability of officers — can be applied to these companies with necessary modifications
• The Corporate Enforcement Authority has an independent power to apply to the court under any of the listed provisions, though any resulting order in the Authority's favour is limited to its costs and expenses
• Any person with a claim against the company may apply to the court for a share of sums or assets recovered following a successful Authority application, but must do so within 30 days of the relevant judgment or order