Companies Act 2014 section 663

Bankruptcy of contributory

Section 663 deals with the rules that apply when a person who is a contributory to a company in winding up becomes bankrupt, and how that bankruptcy interacts with the winding-up process.

• When a contributory becomes bankrupt, the assignee in bankruptcy (the bankruptcy trustee) steps into the contributory's shoes, representing the bankrupt person for all purposes of the winding up and becoming a contributory in their place.
• The trustee may be required to admit as a provable debt against the bankrupt's estate any amounts the bankrupt person owes as a contribution to the company's assets, allowing those amounts to be paid out of the bankrupt's estate in due course of law.
• Claims against the bankrupt's estate may include not only calls already made but also the estimated value of the bankrupt's liability to future calls that have not yet been demanded.
• The section does not affect the enforcement of a contributory's liability in winding-up or insolvency proceedings outside the State, to the extent permitted by conflict-of-laws rules, EU legislation, or any enactment giving effect to an international agreement to which the State is a party.