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Insolvency Act 1986

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Changes over time for: Section 176ZB

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Changes to legislation:

Insolvency Act 1986, Section 176ZB 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

[F1176ZBApplication of proceeds of office-holder claimsE+W+S

(1)This section applies where—

(a)there is a floating charge (whether created before or after the coming into force of this section) which relates to property of a company which—

(i)is in administration, or

(ii)has gone into liquidation; and

(b)the administrator or the liquidator (referred to in this section as “the office-holder”) has—

(i)brought a claim under any provision mentioned in subsection (3), or

(ii)made an assignment (or, in Scotland, assignation) in relation to a right of action under any such provision under section 246ZD.

(2)The proceeds of the claim or assignment (or, in Scotland, assignation) are not to be treated as part of the company's net property, that is to say the amount of its property which would be available for satisfaction of claims of holders of debentures secured by, or holders of, any floating charge created by the company.

(3)The provisions are—

(a)section 213 or 246ZA (fraudulent trading);

(b)section 214 or 246ZB (wrongful trading);

(c)section 238 (transactions at an undervalue (England and Wales));

(d)section 239 (preferences (England and Wales));

(e)section 242 (gratuitous alienations (Scotland));

(f)section 243 (unfair preferences (Scotland));

(g)section 244 (extortionate credit transactions).

(4)Subsection (2) does not apply to a company if or in so far as it is disapplied by—

(a)a voluntary arrangement in respect of the company, or

(b)a compromise or arrangement agreed under Part 26 [F2or 26A] of the Companies Act 2006 (arrangements and reconstructions).]

Textual Amendments

F2Words in s. 176ZB(4)(b) inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 6(2) (with ss. 2(2), 5(2))

Modifications etc. (not altering text)

C5S. 176ZB applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)

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