Liquidated Company Names | Restrictions On Use | Kangs Insolvency Solicitors


The law restricts the use of the name, or of any similar name, of any company which has been liquidated through insolvency and any breach is a criminal offence punishable with a prison sentence, a fine or both.

Clearly, any director who has been associated with such a company should be aware of such potential criminal liability.

The Law | Kangs Insolvency Offence Defence Solicitors

Insolvency Act 1986 states:     

216 Restriction on re-use of company names.

 (1) This section applies to a person where a company (“the liquidating company”) has gone into insolvent liquidation on or after the appointed day and he was a director or shadow director of the company at any time in the period of 12 months ending with the day before it went into liquidation.

(2) For the purposes of this section, a name is a prohibited name in relation to such a person if—

(a) it is a name by which the liquidating company was known at any time in that period of 12 months, or

(b) it is a name which is so similar to  a name falling within paragraph (a)as to suggest an association with that company

(3)Except with leave of the court or in such circumstances as may be prescribed, a person to whom this section applies shall not at any time in the period of 5 years beginning with the day on which the liquidating company went into liquidation—

(a) be a director of any other company that is known by a prohibited name, or

(b) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company, or

(c) in any way, whether directly or indirectly, be concerned or take part in the carrying on of a business carried on (otherwise than by a company) under a prohibited name.

(4) If a person acts in contravention of this section, he is liable to imprisonment or a fine, or both.

Personal Liability | Kangs Criminal Defence Team

Section 217 Personal liability for debts, following contravention of s.216.

A person is personally responsible for all the relevant debts of a company if at any time – 

  • in contravention of section 216, he is involved in the management of the company, or
  • as a person who is involved in the management of the company, he acts or is willing to act on instructions given (without the leave of the court) by a person whom he knows at that time to be in contravention in relation to the company of section 216,

Where a person is personally responsible under this section for the relevant debts of a company, he is jointly and severally liable in respect of those debts with the company and any other person who, whether under this section or otherwise, is so liable.

How Can We Help You? | Kangs National Criminal Defence Solicitors

Our team of solicitors has considerable experience in assisting directors and other company officials in matters arising from insolvency and Director Disqualification Proceedings.

Please feel free to contact our team through any of our solicitors named below who will be happy to provide you with some initial advice and assistance.

Hamraj Kang
07976 258171020 7936 6396 | 0121 449 9888

John Veale
0121 449 9888 | 020 7936 6396

Tim Thompson
020 7936 6396 | 0121 449 9888

Sukhdip Randhawa
0121 449 9888 | 020 7936 6396

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