Companies Act 2014 section 853

Effect of delivery of notice under section 852, giving of restriction undertaking on foot thereof and related matters

Section 853 sets out the legal consequences that follow when the Corporate Enforcement Authority delivers a restriction undertaking notice, including what happens when a person accepts the restriction and the limitations that apply during and after the notice period.

• During the notice period, no application to court for a restriction declaration may be made against the person who is the subject of the notice
• Where the person accepts the restriction, the Authority must register the undertaking with the Registrar and provide the person with a copy of the executed acceptance document
• A person who gives a restriction undertaking is treated as if subject to a court-imposed restriction declaration and may not act as a director or secretary of a company unless that company meets specified capitalisation requirements
• Where a person is already subject to a restriction, any new restriction undertaking runs concurrently with the remaining period of the existing restriction rather than being added on

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