PART 4Protected Cell Companies
CHAPTER 11Debentures (debt securities)
Consequences of unlawful transfer149
1
This regulation applies to a transfer, or a part of a transfer, which is made by a protected cell company—
a
from assets held on behalf of a part (“part A”) of the protected cell company;
b
to a person holding a debenture issued by the protected cell company on behalf of a part of a protected cell company (either part A or another part); and
c
in contravention of regulation 148.
2
If at the time of the transfer the person knows or has reasonable grounds for believing that it is made in contravention of regulation 148, the person is liable—
a
to repay the amount transferred (or that part of it, as the case may be) to the protected cell company; or
b
in the case of a transfer made otherwise than in cash, to pay the protected cell company a sum equal to the value of the transfer (or part of it) at that time.
3
This regulation is without prejudice to any obligation imposed apart from this regulation on a person to repay a transfer which was made unlawfully to that person.
4
A payment made to a protected cell company in accordance with paragraph (2) must be held by the protected cell company on behalf of part A.