C1C2C3 PART VWINDING UP OF COMPANIES REGISTERED UNDER F7the Companies Act 2006

Annotations:
Amendments (Textual)
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C3CHAPTER IPRELIMINARY

Contributories

C3Liability of past directors and shareholdersF1C4C3C563

1

This Article applies where a company is being wound up and—

a

it has under F2Chapter 5 of Part 18 of the Companies Act 2006 (acquisition by limited company of its own shares: redemption or purchase by private company out of capital) made a payment out of capital in respect of the redemption or purchase of any of its own shares (the payment being referred to in this Article as “the relevant payment”), and

b

the aggregate amount of the company's assets and the amounts paid by way of contribution to its assets (apart from this Article) is not sufficient for payment of its debts and liabilities, and the expenses of the winding up.

2

If the winding up commenced within one year from the date on which the relevant payment was made, then—

a

the person from whom the shares were redeemed or purchased, and

b

the directors who signed the F3statement made in accordance with F4section 714(1) to (3) of the Companies Act 2006 for the purposes of the redemption or purchase (except a director who shows that he had reasonable grounds for forming the opinion set out in the F3statement),

are, so as to enable that insufficiency to be met, liable to contribute to the following extent to the company's assets.

3

A person from whom any of the shares were redeemed or purchased is liable to contribute an amount not exceeding so much of the relevant payment as was made by the company in respect of his shares; and the directors are jointly and severally liable with that person to contribute that amount.

4

A person who has contributed any amount to the assets in pursuance of this Article may apply to the High Court for an order directing any other person jointly and severally liable in respect of that amount to pay him such amount as the Court thinks just and equitable.

5

F5Article 61 does not apply in relation to liability accruing by virtue of this Article.

F66

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