Companies Act 2014 section 859

Person acting while disqualified or restricted liable for debts of company

Section 859 deals with the personal liability for company debts that may be imposed on a person who acts in a role from which they are prohibited due to being restricted or disqualified.

• A restricted or disqualified person who acts in a prohibited capacity in relation to a company may be held personally liable for its debts
• The section is triggered where the company begins winding up either during the prohibited activity or within 12 months afterwards
• The company must also be unable to pay its debts for this section to apply
• On application by the liquidator or any creditor, the court may declare the person personally liable, without limit, for all or part of the debts incurred during the period of prohibited activity

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