The following applies where a company’s goods are taken in execution and, before their sale or the completion of the execution (by the receipt or recovery of the full amount of the levy), notice is served on the F2enforcement officer, or other officer, charged with execution of the writ or other process, that a provisional liquidator has been appointed or that a winding-up order has been made, or that a resolution for voluntary winding up has been passed.

The F3enforcement officer or other officer shall, on being so required, deliver the goods and any money seized or received in part satisfaction of the execution to the liquidator; but the costs of execution are a first charge on the goods or money so delivered, and the liquidator may sell the goods, or a sufficient part of them for the purpose of satisfying the charge.

If under an execution in respect of a judgement for a sum exceeding F4£500 a company’s goods are sold or money is paid in order to avoid sale, the F5enforcement officer or other officer shall deduct the costs of the execution from the proceeds of sale or the money paid and retain the balance for 14 days.

If within that time notice is served on the F5enforcement officer or other officer of a petition for the winding up of the company having been presented, or of a meeting having been called at which there is to be proposed a resolution for voluntary winding up, and an order is made or a resolution passed (as the case may be), the F5enforcement officer or other officer shall pay the balance to the liquidator, who is entitled to retain it as against the execution creditor.

The rights conferred by this section on the liquidator may be set aside by the court in favour of the creditor to such extent and subject to such terms as the court thinks fit.

In this section, “goods” includes all chattels personal; and F6“enforcement officer” means an individual who is authorised to act as an enforcement officer under the Courts Act 2003.

The money sum for the time being specified in subsection (3) is subject to increase or reduction by order under section 416 in Part XV.

This section does not apply in the case of a winding up in Scotland.