F1SCHEDULE A1 Moratorium where directors propose voluntary arrangement
Part III Effects of moratorium
Disposals and payments
F219
(1)
Subject to sub-paragraph (2), the company may only make any payment in respect of any debt or other liability of the company in existence before the beginning of the moratorium if—
(a)
there are reasonable grounds for believing that the payment will benefit the company, and
(b)
the payment 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 payment required by paragraph 20(6).
(3)
If the company makes a payment 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.