Companies Act 2014 section 944AF

Limitations on imposing monetary sanctions on relevant director

Section 944AF sets out limits on the Corporate Enforcement Authority's power to impose monetary sanctions on a relevant director, protecting against disproportionate penalties and double punishment for the same conduct.

• The Corporate Enforcement Authority (CEA) may impose monetary sanctions on a relevant director but must observe certain limits.
• A monetary sanction must not be set at a level that would be likely to cause the director to be adjudicated bankrupt.
• Where the same conduct by a director gives rise to two or more relevant contraventions, only one monetary sanction may be imposed in respect of that conduct.
• These protections ensure that sanctions remain proportionate and that a director is not penalised multiple times for a single course of action.