C1C2F1PART 1AMoratorium
Pts. 1-5 modified by S.R. 2004/307 (as amended (1.10.2006) by Limited Liability Partnerships (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/377), reg. 3, Sch. 2; (temp.) (27.4.2020 retrospective) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), Sch. 11 para. 8(1)(2), 14 (with ss. 2(2), 5(2)); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 2 (with reg. 3); (16.2.2021) by The Limited Liability Partnerships (Amendment etc.) Regulations 2021 (S.I. 2021/60), reg. 1(1), Sch. 2 (with reg. 4(2)))
Pts. 1-5 applied (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1A para. 3 (as inserted by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), reg. 1(2), Sch. 1)
CHAPTER 4Effects of moratorium
Restrictions on payments and disposal of property
Restrictions on disposal of property13DK
1
During a moratorium, the company may dispose of its property only if authorised by paragraph (2) or (5).
2
In the case of property that is not subject to a security interest, the company may dispose of the property if—
a
the disposal is made in the ordinary way of the company’s business,
b
the monitor consents, or
c
the disposal is in pursuance of a court order.
3
The monitor may give consent under paragraph (2)(b) 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 paragraph (2)(b), the monitor is entitled to rely on information provided by the company unless the monitor has reason to doubt its accuracy.
5
In the case of property that is subject to a security interest, the company may dispose of the property if the disposal is in accordance with—
a
Article 13DM(1), or
b
the terms of the security.
6
If the company disposes of its property during the moratorium otherwise than as authorised by this Article—
a
the company commits an offence, and
b
any officer of the company who without reasonable excuse authorised or permitted the disposal commits an offence.
Pt. 1A inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 4(1), 49(1) (with ss. 2(2), 5(2))