Companies Act 2014 section 613

Directors of holding company: power of court to assess damages against them

Section 613 gives the court power to assess damages against a director of a holding company who has committed wrongdoing in relation to the assets or affairs of a subsidiary that is being wound up.

• During the winding up of a subsidiary, the court can investigate a holding company director who has misapplied or retained money or property of the subsidiary, or who has breached a duty or trust owed to it
• The liquidator, or any creditor, contributory, or member of the subsidiary, may apply to the court to have the director's conduct examined
• The court can compel the director to repay or restore money or property (with interest), or to contribute a compensation amount to the subsidiary's assets as the court considers just
• These powers apply even if the director faces potential criminal liability for the same matters, and they do not limit any other basis for imposing liability on any person in relation to the company

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