Director information hub: Restrictions on reusing an insolvent company name
Reusing a company name is prohibited and subject to specific restrictions.
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Restrictions
Reusing a company name is prohibited and subject to specific restrictions:
reuse of company name
You cannot do any of the following for 5 years after the liquidation of the insolvent company:
- be a director of a company known by a prohibited name
- be involved in the promotion, formation or management of a company with a prohibited name
- be involved in the carrying on of a business with a prohibited name
Reusing an insolvent company name
The restrictions apply when a company is wound up:
- by the court (compulsory liquidation)
- voluntarily (creditors voluntary liquidation)
If you break these restrictions, you can be:
- made personally liable for the debts incurred by the company during the breach
- prosecuted and/or disqualified from acting as a director
The restrictions apply to any director, formally appointed or not, involved with the company for up to 12 months before its liquidation. They include the company’s registered name and any trading names it may have used.
Exceptions
These restrictions apply unless:
- you have permission from the court to use the name
- the business, including the name, is sold during liquidation and you have notified the court
- the company you’re involved with has been using the same name as the liquidated company for at least one year
Seek independent professional advice if you are:
- or have been a director of a company that has gone into liquidation
- involved in a company that has the same name
- considering starting a company with the same name
Read more information on the reuse of company name.