SCHEDULES

F2SCHEDULE A1 Moratorium where directors propose voluntary arrangement

Part III Effects of moratorium

Disposals and payments

F118

(1)

Subject to sub-paragraph (2), the company may only dispose of any of its property if—

(a)

there are reasonable grounds for believing that the disposal will benefit the company, and

(b)

the disposal is approved by the committee established under paragraph 35(1) or, where there is no such committee, by the nominee.

(2)

Sub-paragraph (1) does not apply to a disposal made in the ordinary way of the company’s business.

(3)

If the company makes a disposal in contravention of sub-paragraph (1) otherwise than in pursuance of an order of the court—

(a)

the company is liable to a fine, and

(b)

if any officer of the company authorised or permitted the contravention, without reasonable excuse, he is liable to imprisonment or a fine, or both.