Companies Act 2014 section 851

Effect of delivery of notice under section 850, giving of disqualification undertaking on foot thereof and related matters

Section 851 sets out what happens once the Corporate Enforcement Authority has issued a disqualification undertaking notice, including the moratorium on court applications, the registration process when a person accepts the undertaking, and the restrictions that follow.

• During the notice period, neither the Authority nor anyone else aware of the notice may apply to court for a disqualification order against the person concerned based on the same facts
• If the person accepts the undertaking within the notice period, the Authority must register the details with the Registrar and provide the person with a copy of the executed acceptance document
• A person who gives a disqualification undertaking is barred from acting as a director, officer, auditor, receiver, liquidator or examiner, or from being involved in the promotion, formation or management of any company, friendly society or industrial and provident society for the duration of the disqualification period
• The Authority may not use this undertaking procedure where a disqualification period of more than five years is warranted or where a court application for disqualification has already been made on the same facts

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