Version Superseded: 26/06/2020
Point in time view as at 27/04/2020.
Insolvency Act 1986, Paragraph 23 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
F1[F223(1)If the company enters into any transaction to which this paragraph applies—E+W+S
(a)the company is liable to a fine, and
(b)if any officer of the company, without reasonable excuse, authorised or permitted the company to enter into the transaction, he is liable to imprisonment or a fine, or both.
(2)A company enters into a transaction to which this paragraph applies if it—
(a)enters into a market contract, F3. . .
(b)gives a transfer order,
(c)grants a market charge F3. . . or a system-charge, or
(d)provides any collateral security.
(3)The fact that a company enters into a transaction in contravention of this paragraph does not—
(a)make the transaction void, or
(b)make it to any extent unenforceable by or against the company.
(4)Where during the moratorium a company enters into a transaction to which this paragraph applies, nothing done by or in pursuance of the transaction is to be treated as done in contravention of paragraphs 12(1)(g), 14 or 16 to 22.
(5)Paragraph 20 does not apply in relation to any property which is subject to a market charge, F3. . . a system-charge or a collateral security charge.
(6)In this paragraph, “transfer order”, “collateral security” and “collateral security charge” have the same meanings as in the settlement finality regulations.]
Textual Amendments
F1Sch. A1 inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 paras. 5, 45(1)-(3)(5) and 1.1.2003 so far as not already in force) by 2000 c. 39, s. 1, Sch. 1 para. 4; S.I. 2001/1751, art. 2; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
F2Sch. A1 inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 paras. 5, 45(1)-(3)(5) and 1.1.2003 in so far as not already in force) by 2000 c. 39, s. 1, Sch. 1 para. 4; S.I. 2001/1751, art. 2; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
F3Words in Sch. A1 para. 23(2)(a)(c)(5) omitted (3.7.2002) by virtue of S.I. 2002/1555, art. 28(4)(a)(b)(c)
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