Companies Act 2014 section 683

Obligation (unless relieved) of liquidator of insolvent company to apply for restriction of directors

Section 683 requires the liquidator of an insolvent company to apply to the court for restriction orders against each director, unless the Corporate Enforcement Authority relieves the liquidator of that obligation.

• When winding up an insolvent company, the liquidator must apply to court to restrict each person who was a director or shadow director at, or within 12 months before, the start of the winding up
• The Corporate Enforcement Authority may relieve the liquidator of this obligation entirely or in respect of particular directors, in which case the duty remains only for unreleved directors
• Where the obligation applies, the liquidator must file the application within 2 months of being notified by the Authority that relief has not been granted, or within any longer period the Authority allows
• Failure to comply is a category 3 offence, and the liquidator's obligations continue until all restriction proceedings, including any appeals, are fully concluded