Companies Act 2014 section 821

Liquidator shall inform court of jeopardy to other company or its creditors

Section 821 requires a liquidator of an insolvent company to notify the court where a restricted person is acting as a director of, or is involved in the formation or promotion of, another company, and that involvement may jeopardise the interests of that other company or its creditors.

• A liquidator must assess whether a restricted person is acting as a director of, or involved in the formation or promotion of, another company and whether this poses a risk to that company or its creditors.
• Where the liquidator forms this view, they must notify the court as soon as practicable, and the court may then make whatever order it considers appropriate.
• A liquidator who fails to notify the court without a reasonable excuse commits a category 3 offence.
• For these purposes, "company" covers the broad range of company types referred to in section 819(6), not just private companies limited by shares.