SCHEDULES

F1SCHEDULE A1MORATORIUM WHERE DIRECTORS PROPOSE VOLUNTARY ARRANGEMENTF2

Annotations:
Amendments (Textual)
F2

mod. by SR 2004/307

PART IVNOMINEES

Challenge of nominee's actions, etc.

37

1

Where there are reasonable grounds for believing that—

a

as a result of any act, omission or decision of the nominee during the moratorium, the company has suffered loss, but

b

the company does not intend to pursue any claim it may have against the nominee,

any creditor of the company may apply to the High Court.

2

An application under sub-paragraph (1) may be made during the moratorium or after it has ended.

3

On an application under sub-paragraph (1) the High Court may—

a

order the company to pursue any claim against the nominee,

b

(authorise any creditor to pursue such a claim in the name of the company, or

c

make such other order with respect to such a claim as it thinks fit,

unless the Court is satisfied that the act, omission or decision of the nominee was in all the circumstances reasonable.

4

An order under sub-paragraph (3) may (among other things)—

a

impose conditions on any authority given to pursue a claim,

b

direct the company to assist in the pursuit of a claim,

c

make directions with respect to the distribution of anything received as a result of the pursuit of a claim,

d

bring the moratorium to an end and make such consequential provision as the High Court thinks fit.

5

On an application under sub-paragraph (1) the High Court shall have regard to the interests of the members and creditors of the company generally.