Rule 14.40 Supplementary provisions as to dividends and distributionsC1
A creditor is not entitled to disturb the payment of any dividend or making of any distribution because—
the amount claimed in the creditor's proof is increased after payment of the dividend;
in an administration, a creditors' voluntary winding up or a winding up by the court the creditor did not prove for a debt before the declaration of the dividend; or
in a members' voluntary winding up, the creditor did not prove for a debt before the last date for proving or increases the claim in proof after that date.
However the creditor is entitled to be paid a dividend or receive a distribution which the creditor has failed to receive out of any money for the time being available for the payment of a further dividend or making a further distribution.
Such a dividend must be paid or distribution made before that money is applied to the payment of any further dividend or making of any further distribution.
If, after a creditor's proof has been admitted, the proof is withdrawn or excluded, or the amount of it is reduced, the creditor is liable to repay to the office-holder, for the credit of the insolvency proceedings, any amount overpaid by way of dividend.
Annotations
Modifications
- C1
Rules 14.37-14.45 applied (with modifications) (19.3.2024) by The Water Industry (Special Administration) (England and Wales) Rules 2024 (S.I. 2024/229), rules 1, 5, 109-113, Sch. (with rule 2(2))