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Prohibited names under Insolvency Act 1986 s 216 and director liability under s 217: key authorities on scope, sanctions and exceptions

Practice notes
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This Practice Note highlights key authorities and related material concerning the prohibited name rule in section 216 of the Insolvency Act 1986, the ramifications of contravening IA 1986, s 216, and the recognised exceptions. The decisions are arranged by theme and address:

  • who is bound by IA 1986, s 216?
  • which names are restricted?
  • what conduct is restricted?
  • penalties for breach of IA 1986, s 216:
    • civil sanctions
    • criminal sanctions
  • avoiding liability under IA 1986, s 216:
    • obtaining leave of the court
    • established name

For further reading on this topic, see Practice Notes:

  • Prohibited names under section 216 of the Insolvency Act 1986
  • How a director of an insolvent company can use a prohibited name and avoid personal liability

Who is bound by IA 1986, s 216?

  • Names of parties: Re Newtons Coaches [2016] EWHC 3068 (Ch), [2016] All ER (D) 109 (Dec)
  • Judgment date: 29 November 2016
  • Case summary: IA 1986, s 216 does not apply to a partnership; it applies only to a “company” capable of being wound up under IA 1986, Pt V
  • Relevant content: Limited liability
...
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Web page updated on 21/05/2026

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