Companies Act 2014 section 664

Corporate insolvency of contributory

Section 664 deals with what happens when a company that is itself a contributory (i.e. a member liable to contribute to the assets of another company being wound up) is also undergoing its own winding up or insolvency process.

• Where a contributory is itself a company being wound up, the contributory company's liquidator represents it throughout the winding-up process and is treated as the contributory on its behalf.
• The liquidator may be required to admit to proof in the contributory company's own winding up any amounts the contributory company owes in respect of its obligation to contribute to the assets of the company being wound up.
• Claims may be proved against the contributory company not only for calls already made but also for the estimated value of its liability to future calls.
• The section applies to all company types — private companies limited by shares, designated activity companies, public limited companies, companies limited by guarantee, unlimited companies, and unregistered companies — and does not affect the enforcement of a contributory's liability in insolvency proceedings outside the State where permitted by conflict-of-laws rules, EU law, or international agreements.

---