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Insolvency Act 1986

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Changes over time for: Section A28

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Status:

Point in time view as at 01/12/2020.

Changes to legislation:

Insolvency Act 1986, Section A28 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F1A28Restrictions on payment of certain pre-moratorium debtsU.K.

(1)During a moratorium, the company may make one or more relevant payments to a person that (in total) exceed the specified maximum amount only if—

(a)the monitor consents,

(b)the payment is in pursuance of a court order, or

(c)the payment is required by section A31(3) or A32(3).

(2)In subsection (1)—

  • “relevant payments” means payments in respect of pre-moratorium debts for which the company has a payment holiday during the moratorium (see section A18);

  • “specified maximum amount” means an amount equal to the greater of—

    (a)

    £5000, and

    (b)

    1% of the value of the debts and other liabilities owed by the company to its unsecured creditors when the moratorium began, to the extent that the amount of such debts and liabilities can be ascertained at that time.

(3)The monitor may give consent under subsection (1)(a) only if the monitor thinks that it will support the rescue of the company as a going concern.

(4)In deciding whether to give consent under subsection (1)(a), the monitor is entitled to rely on information provided by the company unless the monitor has reason to doubt its accuracy.

(5)If the company makes a payment to which subsection (1) applies otherwise than as authorised by that subsection—

(a)the company commits an offence, and

(b)any officer of the company who without reasonable excuse authorised or permitted the payment commits an offence.]

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