SCHEDULES
F4SCHEDULE A1 Moratorium where directors propose voluntary arrangement
F5Part III Effects of moratorium
Sch. A1 (Pts. I-VI) inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 para. 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)
F3 Disposals and payments
Sch. 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)
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.
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.
Sch. 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)