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Companies Act 2006

Changes over time for: Cross Heading: Effect of restrictions notice

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Companies Act 2006, Cross Heading: Effect of restrictions notice is up to date with all changes known to be in force on or before 26 November 2024. 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

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[F1Effect of restrictions noticeU.K.

Textual Amendments

F1Schs. 1A, 1B inserted (26.5.2015 for specified purposes, 6.4.2016 in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 3 para. 2; S.I. 2015/1329, reg. 3(a); S.I. 2015/2029, reg. 4(a)

3(1)The effect of a restrictions notice issued under paragraph 1 with respect to a relevant interest is as follows—U.K.

(a)any transfer of the interest is void,

(b)no rights are exercisable in respect of the interest,

(c)no shares may be issued in right of the interest or in pursuance of an offer made to the interest-holder,

(d)except in a liquidation, no payment may be made of sums due from the company in respect of the interest, whether in respect of capital or otherwise.

(2)An agreement to transfer an interest that is subject to the restriction in sub-paragraph (1)(a) is void.

(3)Sub-paragraph (2) does not apply to an agreement to transfer the interest on the making of an order under paragraph 8 made by virtue of sub-paragraph (3)(b) of that paragraph (removal of restrictions in case of court-approved transfer).

(4)An agreement to transfer any associated right (otherwise than in a liquidation) is void.

(5)Sub-paragraph (4) does not apply to an agreement to transfer any such right on the making of an order under paragraph 8 made by virtue of sub-paragraph (3)(b) of that paragraph (removal of restrictions in case of court-approved transfer).

(6) An “ associated right ”, in relation to a relevant interest, is—

(a)a right to be issued with any shares issued in right of the relevant interest, or

(b)a right to receive payment of any sums due from the company in respect of the relevant interest.

(7)The provisions of this section are subject to any directions given under paragraph 4.]

Modifications etc. (not altering text)

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