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Article 3 Calculation of prescribed part

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The prescribed part of the company’s net property to be made available for the satisfaction of unsecured debts of the company pursuant to section 176A of the 1986 Act shall be calculated as follows—

(a)

where the company’s net property does not exceed £10,000 in value, 50% of that property;

(b)

subject to paragraph (2), where the company’s net property exceeds £10,000 in value the sum of—

(i)

50% of the first £10,000 in value; and

(ii)

20% of that part of the company’s net property which exceeds £10,000 in value.

(2)

The value of the prescribed part of the company’s net property to be made available for the satisfaction of unsecured debts of the company pursuant to section 176A shall not exceed £600,000.