Companies Act 2014 section 612

Power of court to assess damages against certain persons

Section 612 sets out the power of the court to assess damages against certain persons involved in a company's formation, promotion, or management where, during a winding up, it appears they have misapplied company money or property or breached their duties.

• During a winding up, the court may investigate promoters, officers, liquidators, examiners, or receivers who appear to have misapplied or retained company money or property, or committed any breach of duty or trust
• An application to the court may be made by the Corporate Enforcement Authority, the liquidator, or any creditor or contributory of the company
• The court can compel the individual to repay or restore the money or property with interest, or to contribute a sum to the company's assets by way of compensation, as the court considers just
• The court's power to make such an order applies even where the individual concerned may also face criminal liability in respect of the same matters