Insolvency Act 1986, section 249

“Connected” with a company

Part VII Interpretation for First Group of Parts

For the purposes of any provision in this Group of Parts, a person is connected with a company if—

(a)he is a director or shadow director of the company or an associate of such a director or shadow director, or

(b)he is an associate of the company,

and “associate” has the meaning given by section 435 in Part XVIII of this Act .

Definitions used in section 249 1

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act

Cases considering section 249 27

Cavendish IP Solutions Limited v On And On Consultants Limited & Anor

[2026] EWHC 2247 (Ch) · 28 August 2026

The court applied s.249 to treat On And On as connected with the Company because it was an associate of NM, who was a director (see paras [13]; [71]-[74]).

Manolete Partners PLC v Norman Freed & Ors

[2024] EWHC 2242 (Ch) · 30 August 2024Defines

The court applied section 249 to determine that KPL and AGL were connected with Just Recruit through the statutory concept of associates (see paras [10]; [57]-[58]).

The Official Receiver & Anor v Omar Shazaad Nadeem (Bodystretch (UK) Limited, Re)

[2023] EWHC 2735 (Ch) · 3 November 2023Defines

Defines the respondent and his father as connected with the company for the purposes of the statutory preference and transaction provisions. (see para [21])

7 more judgments, and what each says about section 249, are in the case-law panel in the full Act.

Amendments and notes

13 notes from legislation.gov.uk

Modifications

  1. C895S. 249 applied by Social Security Pensions Act 1975 (c. 60, SIF 113:1), s. 57C(4) (as inserted by Social Security Act 1990 (c. 27, SIF 113:1), s. 14, Sch. 4 Pt. I para. 1)
  2. C896S. 249: power to apply (with modifications) conferred (6.4.2005) Pensions Act 2004 (c. 35), ss. 57, 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7 (subject to art. 2(12))
  3. C897S. 249 modified (30.12.2005) by The Occupational Pension Schemes (Investment) Regulations 2005 (S.I. 2005/3378), reg. 10(1)
  4. C898S. 249 modified (22.2.2008) by The Northern Rock plc Transfer Order 2008 (S.I. 2008/432), art. 17(1), Sch. para. 3(b)
  5. C899S. 249 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 13, Sch. 1 para. 3(b)
  6. C900S. 249 modified (7.10.2008 at 9.30 a.m.) ) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 26, Sch. 2 para. 3(b)
  7. C901S. 249 modified (30.3.2009 at. 8:00 a.m.) by The Amendments to Law (Resolution of Dunfermline Building Society) Order 2009 (S.I. 2009/814), art. 7, Sch. para. 3(b)
  8. C902S. 249 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3 reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)
  9. C903S. 249 excluded (1.3.2016) by The NRAM plc (formerly Northern Rock plc) Consequential and Supplementary Provisions Order 2016 (S.I. 2016/114), arts. 1(1), 7(1)(3), Sch. para. 2(b)
  10. C904S. 249 applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 4; S.I. 2018/1161, reg. 3(d)
  11. C905S. 249 applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 3; S.I. 2018/1161, reg. 3(c)
  12. C906S. 249 applied (31.5.2021 for specified purposes) by 2004 c. 35, s. 69A(14)(a) (as inserted by Pension Schemes Act 2021 (c. 1), ss. 109(2), 131(1); S.I. 2021/620, reg. 2(1)(b))
  13. C907S. 249 modified (16.7.2026) by The Modification of the Law (British Steel Limited Property Transfer) Regulations 2026 (S.I. 2026/833), regs. 1(2), 6(2), Sch. para. 3