Companies Act 2014 section 848

Disqualification of restricted person following subsequent winding up

Section 848 deals with what happens when a person who has already been restricted as a director due to a company's insolvency becomes involved in another insolvent company that is wound up within five years.

• Where a restricted person is or becomes a director of a company that begins winding up within five years of the original winding up that led to their restriction, and the new company is also unable to pay its debts, the liquidator must report this to the court.
• The court may then make a disqualification order against the restricted person for whatever period it considers appropriate.
• A liquidator who fails to report these matters to the court commits a category 3 offence.
• The term "restricted person" has the same meaning as in Chapter 3 of Part 14, and references to a company include any company as defined in section 819(6).

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