S.216 Applications with PLS Solicitors
PLS Solicitors provide both specialist advice and assistance in making application for the court’s permission to re-use a restricted name and in defending claims brought against those alleged to be in breach of the above sections.
Re-Use of Company Names – s.216 and s.217 Insolvency Act 1986. When a company goes into insolvent liquidation, the former owners/directors are often tempted to try and retain some of the goodwill associated with their former company. To achieve this, they set up another business or phoenix, using an identical or similar name. However, there are strict rules preventing the re-use of such names and those tempted need to be wary as the consequences can be very serious.
In brief terms, the Insolvency Act 1986 provides as follows:-
– Restricts the re-use of the name of a company in insolvent liquidation and imposes both civil (personal liability) and criminal (imprisonment and/or fine) sanctions on individuals in breach.
– The sanctions apply to anyone who was a director or shadow director (and also anyone acting under their instruction) of a liquidated company at any time in the period of 12 months ending with the day before it went into liquidation.
– Restricted names are those by which the liquidated company was known within 12 months of liquidation or which are so similar as to suggest an association and includes trading names.
– Re-use of a restricted name is prohibited for 5 years from the date of liquidation unless the permission of the court is granted.
– Any person caught by this section, cannot be a director or directly or indirectly involved in the promotion, formation or management of a company using a restricted name.
– Whilst the court can, in appropriate circumstances, grant permission it cannot do so retrospectively.
– Three exceptions to the need to obtain the court permission.
PLS Solicitors specialise in advising on the complex area of company insolvency, especially S.216 Applications. We offer a friendly, efficient and effective legal advice on any area of company insolvency.
- We explain the process in plain english, no legal jargon.
- We adopt an understanding and methodical approach when dealing with each individual case.
- Our office hours are 9am to 7pm Monday – Friday and 9am to 4.30pm Saturday and Sunday
- We are fast. Because of our speed, we work as a nominated solicitor for many of the UK's largest developers.
- We have a team of 100+ staff based in the UK
- All work is carried out in-house by a member of our team.
- Between our directors we have over 100 years worth of conveyancing experience
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