Director information hub: Restrictions on reusing an insolvent company name
Reuse of a company name by a director is prohibited and subject to restrictions if the company goes into insolvent liquidation.
Restrictions
If a company goes into insolvent liquidation, there are restrictions on the reuse of its name by its directors unless an exception applies.
A prohibited name is the company’s registered name, any trading names it used or any similar name that suggests an association with the liquidated company.
For 5 years following the liquidation you must not:
- be a director of a company that uses a prohibited name
- take part in the promotion, formation or management of a company that has a prohibited name
- carry on, or be involved in the carrying on of, a business that uses 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 may be:
- made personally liable for the debts incurred by the company during the breach
- prosecuted
- disqualified from acting as a company director
The restrictions apply to any director who was involved with the company in the 12 months before it entered liquidation, whether or not they were formally appointed.
Exceptions
These restrictions do not apply if:
- you have the court’s permission to use the name
- the business, including the name, is purchased from a liquidator, administrator or the supervisor of a company voluntary arrangement (CVA) and you have given the required legal notices
- the company you’re involved with has been trading using the same name as the liquidated company for at least 12 months before the liquidation
Seek independent professional advice if you:
- are or have been a director of a company that has gone into liquidation and
- are involved with, or planning to start, a company or business that uses the same or a similar name
Read more information on the reuse of company name.
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Updates to this page
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New content from stakeholder - August 2026
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First published.