Companies Act 2014 section 818

Interpretation and application (Chapter 3)

Section 818 sets out the key definitions and rules of interpretation used throughout the chapter dealing with restrictions on directors of insolvent companies.

• An "insolvent company" is one that cannot pay its debts, as proven to the court at the start of winding up or certified by the liquidator at any point during the winding up process.
• A "director of an insolvent company" includes any person who was a director or shadow director either at the date winding up commenced or within the 12 months before that date.
• A "restricted person" is someone currently subject to a restriction declaration made by the court, and if they remain in office as a director without the relevant capital requirements being met, the restriction is automatically treated as having been breached.
• The chapter does not apply to any company whose winding up commenced before 1 August 1991.