Section 387: Exception to section 386

387. Exception to section 386 (1) Section 386 (2) and (3) does not apply to a person named in a successor company notice. (2) A successor company is a company that acquires the whole or substantially the whole of the business of a failed company under arrangements made by a liquidator or receiver or made under a deed of company arrangement. (3) A successor company notice is a notice by a successor company that— (a) is sent by the successor company to all creditors of the failed company for whom the successor company has an address; (b) is sent to those creditors within one month after the arrangements for the acquisition of the business are made under subsection (2); (c) specifies— (i) the name and registered number of the failed company; (ii) the circumstances in which the business has been acquired by the successor business; (iii) the name that the successor company has assumed, or proposes to assume, for the purpose of carrying on that business; (iv) any change of name that the successor company has made, or proposes to make, for the purpose of carrying on that business; and (d) states, in respect of a person named in the notice— (i) his full name; (ii) the duration of his directorship of the failed company; and (iii) the extent of his involvement in the management of the failed company. (4) A person does not contravene a prohibition in section 386 (2) and (3) for the temporary period set out in subsection (5) if that person applies to the Court within 5 working days after the commencement of the winding up of the failed company for an order exempting that person from the prohibition in question. I14 – 213 [Issue 3] Insolvency Act (5) The temporary period in subsection (4) is the period beginning on the date of the commencement of the winding up of the failed company and ending on the earlier of— (a) the close of 42 days after the commencement of the winding up; and (b) the date on which the Court makes an order of exemption. (6) The prohibitions in section 386 (2) (a) and (b) do not apply in respect of a phoenix company that has been known by a name or names that are the same as the failed company’s pre-liquidation name or are similar names where— (a) it has been known by that name or those names for not less than the period of 12 months before liquidation commences; and (b) it has not been dormant during those 12 months. (7) For the purposes of subsection (6), a company has not been dormant during the 12 month period if transactions that are required by section 193 (2) of the Companies Act to be recorded in its accounting records have occurred throughout that period. Sub-Part III – Miscellaneous Offences