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 6Challenges
Challenge to directors’ actions13FB
1
A creditor or member of a company may apply to the High Court for an order under this Article on the ground that—
a
during a moratorium, the company’s affairs, business and property are being or have been managed by the directors in a manner which has unfairly harmed the interests of its creditors or members generally or of some part of its creditors or members (including at least the applicant), or
b
any actual or proposed act or omission of the directors during a moratorium causes or would cause such harm.
2
An application under paragraph (1) may be made during the moratorium or after it has ended.
3
On an application under paragraph (1) the Court may make such order as it thinks fit.
4
An order under paragraph (3) may in particular—
a
regulate the management by the directors of the company’s affairs, business and property during the remainder of the moratorium,
b
require the directors to refrain from doing or continuing an act complained of by the applicant or to do an act which the applicant has complained they have omitted to do,
c
require the summoning of a meeting of the company’s creditors for the purpose of considering such matters as the Court may direct, or
d
bring the moratorium to an end and make such consequential provision as the Court thinks fit.
5
In making an order under paragraph (3) the Court must have regard to the need to safeguard the interests of persons who have dealt with the company in good faith and for value.
6
See also Article 13CH (obligations to notify change in end of moratorium).
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))