SCHEDULE 2Enforcement of disclosure requirements
Effect of restrictions notice
3.
(1)
The effect of a restrictions notice issued under paragraph 1 with respect to a relevant interest is as follows—
(a)
any transfer of the interest is void,
(b)
no rights are exercisable in respect of the interest,
(c)
except in a liquidation or a sequestration of the eligible Scottish partnership under the Bankruptcy (Scotland) Act 2016, no payment may be made of sums due from the eligible Scottish partnership in respect of the interest, whether in respect of capital or otherwise.
(2)
An agreement to transfer an interest that is subject to the restriction in sub-paragraph (1)(a) is void.
(3)
Sub-paragraph (2) does not apply to an agreement to transfer the interest on the making of an order under paragraph 7 made by virtue of sub-paragraph (3)(b) of that paragraph (removal of restrictions in case of court-approved transfer).
(4)
An agreement to transfer any associated right (otherwise than in a liquidation) is void.
(5)
Sub-paragraph (4) does not apply to an agreement to transfer any such right on the making of an order under paragraph 7 made by virtue of sub-paragraph (3)(b) of that paragraph (removal of restrictions in case of court-approved transfer).
(6)
An “associated right”, in relation to a relevant interest, is a right to receive payment of any sums due from the eligible Scottish partnership in respect of the relevant interest.
(7)
The provisions of this paragraph are subject to any directions given under paragraph 4.