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Companies Act 1985

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Changes over time for: Section 652B

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Version Superseded: 15/09/2003

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F1652B Duties in connection with making application under section 652A.E+W+S

(1)A person shall not make an application under section 652A on behalf of a company if, at any time in the previous 3 months, the company has—

(a)changed its name,

(b)traded or otherwise carried on business,

(c)made a disposal for value of property or rights which, immediately before ceasing to trade or otherwise carry on business, it held for the purpose of disposal for gain in the normal course of trading or otherwise carrying on business, or

(d)engaged in any other activity, except one which is—

(i)necessary or expedient for the purpose of making an application under section 652A, or deciding whether to do so,

(ii)necessary or expedient for the purpose of concluding the affairs of the company,

(iii)necessary or expedient for the purpose of complying with any statutory requirement, or

(iv)specified by the Secretary of State by order for the purposes of this sub-paragraph.

(2)For the purposes of subsection (1), a company shall not be treated as trading or otherwise carrying on business by virtue only of the fact that it makes a payment in respect of a liability incurred in the course of trading or otherwise carrying on business.

(3)A person shall not make an application under section 652A on behalf of a company at a time when any of the following is the case—

(a)an application has been made to the court under section 425 on behalf of the company for the sanctioning of a compromise or arrangement and the matter has not been finally concluded;

(b)a voluntary arrangement in relation to the company has been proposed under Part I of M1 the Insolvency Act 1986 and the matter has not been finally concluded;

(c)an administration order in relation to the company is in force under Part II of that Act or a petition for such an order has been presented and not finally dealt with or withdrawn;

(d)the company is being wound up under Part IV of that Act, whether voluntarily or by the court, or a petition under that Part for the winding up of the company by the court has been presented and not finally dealt with or withdrawn;

(e)there is a receiver or manager of the company’s property;

(f)the company’s estate is being administered by a judicial factor.

(4)For the purposes of subsection (3)(a), the matter is finally concluded if—

(a)the application has been withdrawn,

(b)the application has been finally dealt with without a compromise or arrangement being sanctioned by the court, or

(c)a compromise or arrangement has been sanctioned by the court and has, together with anything required to be done under any provision made in relation to the matter by order of the court, been fully carried out.

(5)For the purposes of subsection (3)(b), the matter is finally concluded if—

(a)no meetings are to be summoned under section 3 of the Insolvency M2Act 1986,

(b)meetings summoned under that section fail to approve the arrangement with no, or the same, modifications,

(c)an arrangement approved by meetings summoned under that section, or in consequence of a direction under section 6(4)(b) of that Act, has been fully implemented, or

(d)the court makes an order under subsection (5) of section 6 of that Act revoking approval given at previous meetings and, if the court gives any directions under subsection (6) of that section, the company has done whatever it is required to do under those directions.

(6)A person who makes an application under section 652A on behalf of a company shall secure that a copy of the application is given, within 7 days from the day on which the application is made, to every person who, at any time on that day, is—

(a)a member of the company,

(b)an employee of the company,

(c)a creditor of the company,

(d)a director of the company,

(e)a manager or trustee of any pension fund established for the benefit of employees of the company, or

(f)a person of a description specified for the purposes of this paragraph by regulations made by the Secretary of State.

(7)Subsection (6) shall not require a copy of the application to be given to a director who is a party to the application.

(8)The duty imposed by subsection (6) shall cease to apply if the application is withdrawn before the end of the period for giving the copy application.

(9)The Secretary of State may by order amend subsection (1) for the purpose of altering the period in relation to which the doing of the things mentioned in paragraphs (a) to (d) of that subsection is relevant.

Textual Amendments

Modifications etc. (not altering text)

C1S. 652B applied (with modifications) (6.4.2001) by S.I. 2001/1090, reg. 4, Sch. 2 Pt. I

Marginal Citations

Yn ôl i’r brig

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