Q&As

When sending a notice to creditors of an insolvent company of the re-use of a prohibited name under Rule 22.4 of the Insolvency Rules 2016, where multiple names which the insolvent company traded under wished to be used, should individual notices be sent out for each name that they wish to use? Or is one sufficient for all names?

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Published on LexisPSL on 04/09/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • When sending a notice to creditors of an insolvent company of the re-use of a prohibited name under Rule 22.4 of the Insolvency Rules 2016, where multiple names which the insolvent company traded under wished to be used, should individual notices be sent out for each name that they wish to use? Or is one sufficient for all names?

When sending a notice to creditors of an insolvent company of the re-use of a prohibited name under Rule 22.4 of the Insolvency Rules 2016, where multiple names which the insolvent company traded under wished to be used, should individual notices be sent out for each name that they wish to use? Or is one sufficient for all names?

The prohibited names provisions are aimed at preventing phoenix companies from causing a disadvantage to creditors by creating more transparency surrounding the re-use of company names in these situations. Breach of these provisions can lead to severe penalties, both civil and criminal.

Section 216(3) of the Insolvency Act 1986 (IA 1986) and Rule 22.4–22.5 of the Insolvency Rules 2016, SI 2016/1024 contain exceptions allowing a director to use a prohibited name in certain situations. SI 2016/1024, r 22.4 provides:

‘(2) The person will not be taken to have contravened section 216 if prior to that person acting in the circumstances set out in paragraph (1) a notice is, in accordance with the requirements of paragraph (3),—

(a) given by the person, to every creditor of the insolvent company whose name and address—

(i) is known by that person, or

(ii) is ascertainable by that person on the

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