Dealings by committee members and othersE+W
17.25.—(1) This rule applies in a creditors' voluntary winding up, a winding up by the court and a bankruptcy to a person who is, or has been in the preceding 12 months—
(a)a member of the committee;
(b)a member's representative; or
(c)an associate of a member, or of a member's representative.
(2) Such a person must not enter into a transaction as a result of which that person would—
(a)receive as an expense of the insolvency proceedings a payment for services given or goods supplied in connection with the administration of the insolvent estate;
(b)obtain a profit from the administration of the insolvent estate; or
(c)acquire an asset forming part of the insolvent estate.
(3) However such a transaction may be entered into—
(a)with the prior sanction of the committee, where it is satisfied (after full disclosure of the circumstances) that the person will be giving full value in the transaction;
(b)with the prior permission of the court; or
(c)if that person does so as a matter of urgency, or by way of performance of a contract in force before the start of the insolvency proceedings, and that person obtains the court's permission for the transaction, having applied for it without undue delay.
(4) Neither a member nor a representative of a member who is to participate directly or indirectly in a transaction may vote on a resolution to sanction that transaction.
(5) The court may, on the application of an interested person—
(a)set aside a transaction on the ground that it has been entered into in contravention of this rule; and
(b)make such other order about the transaction as it thinks just, including an order requiring a person to whom this rule applies to account for any profit obtained from the transaction and compensate the insolvent estate for any resultant loss.
(6) The court will not make an order under the previous paragraph in respect of an associate of a member of the committee or an associate of a member's representative, if satisfied that the associate or representative entered into the relevant transaction without having any reason to suppose that in doing so the associate or representative would contravene this rule.
(7) The costs of the application are not payable as an expense of the insolvency proceedings unless the court orders otherwise.