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Section A29 Restrictions on disposal of propertyC1F1

(1)

During a moratorium, the company may dispose of its property only if authorised by subsection (2) or (5).

(2)

In the case of property that is not subject to a security interest, the company may dispose of the property if—

(a)

the disposal is made in the ordinary way of the company’s business,

(b)

the monitor consents, or

(c)

the disposal is in pursuance of a court order.

(3)

The monitor may give consent under subsection (2)(b) only if the monitor thinks that it will support the rescue of the company as a going concern.

(4)

In deciding whether to give consent under subsection (2)(b), the monitor is entitled to rely on information provided by the company unless the monitor has reason to doubt its accuracy.

(5)

In the case of property that is subject to a security interest, the company may dispose of the property if the disposal is in accordance with—

(a)

section A31(1), or

(b)

the terms of the security.

(6)

If the company disposes of its property during the moratorium otherwise than as authorised by this section—

(a)

the company commits an offence, and

(b)

any officer of the company who without reasonable excuse authorised or permitted the disposal commits an offence.

Annotations

Textual amendments

F1

Pt. A1 inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 1(1), 49(1) (with ss. 2(2), 5(2))

Modifications

C1

Ss. A29-A32 excluded by S.I. 2015/912, reg. 37(12A)(d) (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 55(4) (with ss. 2(2), 5(2)))

Notes on Part A1

Modifications

C1

Pt. A1 excluded by S.I. 2012/3013, Sch. 1 para. 1(2A) (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 49(4) (with ss. 2(2), 5(2)))

C2

Pt. A1 power to apply (with modifications) conferred by 2011 c. 25, s. 247A (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 45 (with ss. 2(2), 5(2)))

C3

Pt. A1 applied (with modifications) by S.I. 2014/229, art. 2(A1), Sch. 1 para. 1(2), Pt. 1A (as inserted (18.7.2020) by The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) (Amendment) and Consequential Amendments Order 2020 (S.I. 2020/744), arts. 1, 7(b), 11(b)(c))

C4

Pt. A1 applied (with modifications) (E.W.S.) (3.9.2020) by The Insolvency (Moratorium) (Special Administration for Energy Licensees) Regulations 2020 (S.I. 2020/943), regs. 1(2), 2-10