HL Deb 23 October 1985 vol 467 cc1134-5

36 After Clause 10, insert the following new clause: 'Restriction on use of company names. '(1) This section applies to a person where a company ("the relevant company") has gone into insolvent liquidation and he was a director or shadow director of the company at any time in the period of twelve months ending with the day before it went into liquidation; and for the purposes of this section a name is a prohibited name in relation to such a person if—

  1. (a) it is a name by which the relevant company was known at any time in the said period; or
  2. (b) it is a name which is so similar to a name falling within paragraph (a) above as to suggest an association with the relevant company.
(2) Except with the leave of the court a person to whom this section applies shall not at any time in the period of five years beginning with the day on which the relevant company went into liquidation—
  1. (a) be a director of any other company that is known by a prohibited name; or
  2. (b) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company; or
  3. (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.
 (3) If a person acts in contravention of this section, he shall, in respect of each offence, be liable—
  1. (a) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both;
  2. (b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.
 (4) In subsection (2) above "the court" means any court having jurisdiction to wind up companies; and on an application for leave under that subsection, the Secretary of State or the official receiver may appear and call the attention of the court to any matters which seem to him to be relevant. (5) References in this section, in relation to any time, to a name by which a company is known are references to the name of the company at that time or to any name under which the company carries on business at that time. (6) For the purposes of this section a company goes into insolvent liquidation if it goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up. (7) In this section "company" includes a company which may be wound up under Part XXI of the 1985 Act.'