Companies Act 2014 section 599

Related company may be required to contribute to debts of company being wound up

Section 599 deals with the court's power to order a related company to contribute towards the debts of a company that is being wound up.

• On application by the liquidator, a creditor, or a contributory, the court may order a related company to pay an amount equivalent to all or part of the debts provable in the winding up, if it considers it just and equitable to do so.
• The court must consider factors including the related company's involvement in management, its conduct towards creditors, the effect on the related company's own creditors, and the extent to which the related company's actions contributed to the winding up.
• An order cannot be made solely on the basis that the companies are related, or that creditors relied on the existence of that relationship.
• Where the order would affect a credit institution, the Central Bank must be notified and has the right to be heard before any order is made.