The restriction applies to a person who was a director or shadow director of a liquidating company at any time during the twelve months before the company went into liquidation.
For that person a company or trading name is a ‘prohibited name’ if:
It is a name by which the liquidating company was known at any time in that period of twelve months, or
It is a name so similar to the name of the liquidating company as to suggest an association with that company
The restriction lasts for five years from the date of liquidation and means the restricted person cannot:
Be a director of any other company that is known by a prohibited name, or
Whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company, or
Whether directly or indirectly, be concerned or take part in the carrying on of a business carried on under a prohibited name. The prohibited name restriction is not just limited to incorporated entities and extends to prohibiting trade as a sole trader or partnership
A person who breaches such restriction will be liable to imprisonment, a fine, or both.