Companies Act 2014 section 849

Definitions (Chapter 5)

Section 849 defines the key terms used in the chapter dealing with disqualification and restriction undertakings, which allow individuals to voluntarily accept being barred from certain company roles without the need for a court order.

• Disqualification means being banned from acting as a director, officer, receiver, statutory auditor, liquidator or examiner, or from being involved in the promotion, formation or management of companies, friendly societies and industrial and provident societies.
• Restriction means a five-year ban on acting as a director or secretary of a company, or being involved in promoting or forming a company, unless the company meets specified minimum capital requirements.
• Disqualification and restriction undertakings are voluntary commitments by individuals to submit themselves to disqualification or restriction, accepted by the Director of Corporate Enforcement, thereby avoiding the need for a court appearance.
• The chapter also defines the formal acceptance documents for both disqualification and restriction undertakings, as well as the court-based disqualification order and restriction declaration to which the undertakings correspond.