Insolvency Act · 2022 Revised Edition · Chapter X
189. Personal liability for debts, following contravention of section 188
Official textFrom Attorney General's Chambers, unchanged
A person is personally responsible for all the relevant debts of a company if at any time —
company
“company” means a company incorporated or registered under the Companies Act;
in contravention of section 188, 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 leave of the Court) by a person whom he knows at that time to be in contravention in relation to the company of section 188.
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.
For the purposes of this section, the relevant debts of a company are —
in relation to a person who is personally responsible under subsection (1)(a), such debts and other liabilities of the company as are incurred at a time when that person was involved in the management of the company; and
in relation to a person who is personally responsible under subsection (1)(b), such debts and other liabilities of the company as are incurred at a time when that person was acting or was willing to act on instructions given as mentioned in that subsection.
For the purposes of this section, a person is involved in the management of a company if he is a director of the company or if he is concerned, whether directly or indirectly, or takes part, in the management of the company.
For the purposes of this section, a person who, as a person involved in the management of a company, has at any time acted on instructions given (without leave of the Court) by a person whom he knew at that time to be in contravention in relation to the company of section 188 is
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
Insolvency presumed, unless the contrary is shown, to have been willing at any time thereafter to act on any instructions given by that person.
insolvency
“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
In this section, “company” includes a company which may be wound up under Part 6.
Investigation and prosecution of malpractice
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
Part