Change 1 Article Choose an article Title and introductory text A1 Overview A2 Eligible companies A3 Obtaining a moratorium by filing or lodging documents at court A4 Obtaining a moratorium for company subject to winding-up petition A5 Obtaining a moratorium for other overseas companies A6 The relevant documents A7 Beginning of moratorium and appointment of monitor A8 Obligations to notify where moratorium comes into force A9 End of the moratorium A10 Extension by directors without creditor consent A11 Extension by directors with creditor consent A12 Creditor consent for the purposes of section A11 A13 Extension by court on application of directors A14 Extension while proposal for CVA pending A15 Extension by court in the course of other proceedings A16 Company enters into insolvency procedure etc A17 Obligations to notify change in end of moratorium A18 Overview and construction of references to payment holidays A19 Publicity about moratorium A20 Restrictions on insolvency proceedings etc A21 Restrictions on enforcement and legal proceedings A22 Floating charges A23 Enforcement of security granted during moratorium A24 Duty of directors to notify monitor of insolvency proceedings etc A25 Restrictions on obtaining credit A26 Restrictions on grant of security etc A27 Prohibition on entering into market contracts etc A28 Restrictions on payment of certain pre-moratorium debts A29 Restrictions on disposal of property A30 Restrictions on disposal of hire-purchase property A31 Disposal of charged property free from charge A32 Disposal of hire-purchase property A33 Contravention of certain requirements imposed under this Chapter A34 Status of monitor A35 Monitoring A36 Provision of information to monitor A37 Application by monitor for directions A38 Termination of moratorium by monitor A39 Replacement of monitor or appointment of additional monitor A40 Application of Part where two or more persons act as monitor A41 Presumption of validity A42 Challenge to monitor’s actions A43 Challenges to monitor remuneration in insolvency proceedings A44 Challenge to directors’ actions A45 Challenge brought by Board of the Pension Protection Fund A46 Offence of fraud etc during or in anticipation of moratorium A47 Offence of false representation etc to obtain a moratorium A48 Prosecution of delinquent officers of company A49 Regulated companies: modifications to this Part A50 Power to modify this Part etc in relation to certain companies A51 Power to make provision in connection with pension schemes A52 Void provisions in floating charge documents A53 Meaning of “pre-moratorium debt” and “moratorium debt” A54 Interpretation of this Part: general A55 Regulations 1 Those who may propose an arrangement. 1A Moratorium. 2 Procedure where nominee is not the liquidator or administrator. 3 Consideration of proposal. 4 Decisions of the company and its creditors. 4A Approval of arrangement. 5 Effect of approval. 6 Challenge of decisions. 6A False representations, etc. 7 Implementation of proposal. 7A Prosecution of delinquent officers of company. 7B Arrangements coming to an end prematurely. 8 Administration 9 Application for order. 10 Effect of application. 11 Effect of order. 12 Notification of order. 13 Appointment of administrator. 14 General powers. 15 Power to deal with charged property, etc. 16 Operation of s. 15 in Scotland. 17 General duties. 18 Discharge or variation of administration order. 19 Vacation of office. 20 Release of administrator. 21 Information to be given by administrator. 22 Statement of affairs to be submitted to administrator. 23 Statement of proposals. 24 Consideration of proposals by creditors’ meeting. 25 Approval of substantial revisions. 26 Creditors’ committee. 27 Protection of interests of creditors and members. 28 Extent of this Chapter. 29 Definitions. 30 Disqualification of body corporate from acting as receiver. 31 Disqualification of bankrupt or person in respect of whom a debt relief order is made 32 Power for court to appoint official receiver. 33 Time from which appointment is effective. 34 Liability for invalid appointment. 35 Application to court for directions. 36 Court’s power to fix remuneration. 37 Liability for contracts, etc. 38 Receivership accounts to be delivered to registrar. 39 Notification that receiver or manager appointed. 40 Payment of debts out of assets subject to floating charge. 41 Enforcement of duty to make returns. 42 General powers. 43 Power to dispose of charged property, etc. 44 Agency and liability for contracts. 45 Vacation of office. 46 Information to be given by administrative receiver. 47 Statement of affairs to be submitted. 48 Report by administrative receiver. 49 Committee of creditors. 50 Extent of this Chapter. 51 Power to appoint receiver. 52 Circumstances justifying appointment. 53 Mode of appointment by holder of charge. 54 Appointment by court. 55 Powers of receiver. 56 Precedence among receivers. 57 Agency and liability of receiver for contracts. 58 Remuneration of receiver. 59 Priority of debts. 60 Distribution of moneys. 61 Disposal of interest in property. 62 Cessation of appointment of receiver. 63 Powers of court. 64 Notification that receiver appointed. 65 Information to be given by receiver. 66 Company’s statement of affairs. 67 Report by receiver. 68 Committee of creditors 69 Enforcement of receiver’s duty to make returns, etc. 70 Interpretation for Chapter II. 71 Prescription of forms, etc.; regulations. 72 Cross-border operation of receivership provisions. 72A Floating charge holder not to appoint administrative receiver 72B First exception: capital market 72C Second exception: public-private partnership 72D Third exception: utilities 72DA Exception in respect of urban regeneration projects 72E Fourth exception: project finance 72F Fifth exception: financial market 72G Sixth exception: social landlords 72GA Exception in relation to protected railway companies etc. 72H Sections 72A to 72G: supplementary 73 Scheme of this Part 74 Liability as contributories of present and past members. 75 Directors, etc. with unlimited liability. 76 Liability of past directors and shareholders. 77 Limited company formerly unlimited. 78 Unlimited company formerly limited. 79 Meaning of “contributory”. 80 Nature of contributory’s liability. 81 Contributories in case of death of a member. 82 Effect of contributory’s bankruptcy. 83 Companies registered but not formed under the Companies Act 2006 84 Circumstances in which company may be wound up voluntarily. 85 Notice of resolution to wind up. 86 Commencement of winding up. 87 88 Avoidance of share transfers, etc. after winding-up resolution. 89 Statutory declaration of solvency. 90 Distinction between “members’” and “creditors’” voluntary winding up. 91 Appointment of liquidator. 92 Power to fill vacancy in office of liquidator. 92A Progress report to company ... 93 General company meeting at each year’s end (Scotland) 94 Final account prior to dissolution 95 Effect of company’s insolvency. 96 Conversion to creditors’ voluntary winding up. 97 Application of this Chapter. 98 Meeting of creditors. 99 Directors to lay statement of affairs before creditors. 100 Appointment of liquidator. 101 Appointment of liquidation committee. 102 Creditors’ meeting where winding up converted under s. 96. 103 Cesser of directors’ powers. 104 Vacancy in office of liquidator. 104A Progress report to company and creditors ... ... 105 Meetings of company and creditors at each year’s end (Scotland). 106 Final account prior to dissolution. 107 Distribution of company’s property. 108 Appointment or removal of liquidator by the court. 109 Notice by liquidator of his appointment. 110 Acceptance of shares, etc., as consideration for sale of company property. 111 Dissent from arrangement under s. 110. 112 Reference of questions to court. 113 Court’s power to control proceedings (Scotland). 114 No liquidator appointed or nominated by company. 115 Expenses of voluntary winding up. 116 Saving for certain rights. 117 High Court and county court jurisdiction. 118 Proceedings taken in wrong court. 119 Proceedings in county court; case stated for High Court. 120 Court of Session and sheriff court jurisdiction. 121 Power to remit winding up to Lord Ordinary. 122 Circumstances in which company may be wound up by the court. 123 Definition of inability to pay debts. 124 Application for winding up. 124A Petition for winding up on grounds of public interest. 124B Petition for winding up of SE 124C Petition for winding up of SCE 125 Powers of court on hearing of petition. 126 Power to stay or restrain proceedings against company. 127 Avoidance of property dispositions, etc. 128 Avoidance of attachments, etc. 129 Commencement of winding up by the court. 130 Consequences of winding-up order. 131 Company’s statement of affairs. 132 Investigation by official receiver. 133 Public examination of officers 134 Enforcement of s. 133. 135 Appointment and powers of provisional liquidator. 136 Functions of official receiver in relation to office of liquidator. 137 Appointment by Secretary of State. 138 Appointment of liquidator in Scotland. 139 Choice of liquidator by creditors and contributories. 140 Appointment by the court following administration or voluntary arrangement. 141 Liquidation committee (England and Wales). 142 Liquidation committee (Scotland). 143 General functions in winding up by the court. 144 Custody of company’s property. 145 Vesting of company property in liquidator. 146 Final account 146A Official receiver’s duty to send statement to registrar about other proceedings 147 Power to stay or sist winding up. 148 Settlement of list of contributories and application of assets. 149 Debts due from contributory to company. 150 Power to make calls. 151 Payment into bank of money due to company. 152 Order on contributory to be conclusive evidence. 153 Power to exclude creditors not proving in time. 154 Adjustment of rights of contributories. 155 Inspection of books by creditors, etc. 156 Payment of expenses of winding up. 157 Attendance at company meetings (Scotland). 158 Power to arrest absconding contributory. 159 Powers of court to be cumulative. 160 Delegation of powers to liquidator (England and Wales). 161 Orders for calls on contributories (Scotland). 162 Appeals from orders in Scotland. 163 Style and title of liquidators. 164 Corrupt inducement affecting appointment. 165 Voluntary winding up. 166 Creditors’ voluntary winding up. 167 Winding up by the court. 168 Supplementary powers (England and Wales). 169 Supplementary powers (Scotland). 170 Enforcement of liquidator’s duty to make returns, etc. 171 Removal, etc. (voluntary winding up). 172 Removal, etc. (winding up by the court). 173 Release (voluntary winding up). 174 Release (winding up by the court). 174A Moratorium debts etc: priority 175 Preferential debts (general provision). 176 Preferential charge on goods distrained , etc. 176AZA Non-preferential debts of financial institutions 176ZA Payment of expenses of winding up (England and Wales) 176ZB Application of proceeds of office-holder claims 176A Share of assets for unsecured creditors 177 Power to appoint special manager. 178 Power to disclaim onerous property. 179 Disclaimer of leaseholds. 180 Land subject to rentcharge. 181 Powers of court (general). 182 Powers of court (leaseholds). 183 Effect of execution or attachment (England and Wales). 184 Duties of officers charged with execution of writs and other processes (England and Wales). 185 Effect of diligence (Scotland) 186 Rescission of contracts by the court. 187 Power to make over assets to employees. 188 Notification that company is in liquidation. 189 Interest on debts. 190 Documents exempt from stamp duty. 191 Company’s books to be evidence. 192 Information as to pending liquidations. 193 Unclaimed dividends (Scotland). 194 Resolutions passed at adjourned meetings. 195 Court's powers to ascertain wishes of creditors or contributories. 196 Judicial notice of court documents. 197 Commission for receiving evidence. 198 Court order for examination of persons in Scotland. 199 Costs of application for leave to proceed (Scottish companies). 200 Affidavits etc. in United Kingdom and overseas. 201 Dissolution (voluntary winding up). 202 Early dissolution (England and Wales). 203 Consequence of notice under s. 202. 204 Early dissolution (Scotland). 205 Dissolution otherwise than under ss. 202-204. 206 Fraud, etc. in anticipation of winding up. 207 Transactions in fraud of creditors. 208 Misconduct in course of winding up. 209 Falsification of company’s books. 210 Material omissions from statement relating to company’s affairs. 211 False representations to creditors. 212 Summary remedy against delinquent directors, liquidators, etc. 213 Fraudulent trading. 214 Wrongful trading. 215 Proceedings under ss. 213, 214. 216 Restriction on re-use of company names. 217 Personal liability for debts, following contravention of s. 216. 218 Prosecution of delinquent officers and members of company. 219 Obligations arising under s. 218. 220 Meaning of “unregistered company”. 221 Winding up of unregistered companies. 222 Inability to pay debts: unpaid creditor for £750 or more. 223 Inability to pay debts: debt remaining unsatisfed after action brought. 224 Inability to pay debts: other cases. 225 Company incorporated outside Great Britain may be wound up though dissolved. 226 Contributories in winding up of unregistered company. 227 Power of court to stay, sist or restrain proceedings. 228 Actions stayed on winding-up order. 229 Provisions of this Part to be cumulative. 230 Holders of office to be qualified insolvency practitioners. 231 Appointment to office of two or more persons. 232 Validity of office-holder’s acts. 233 Supplies of gas, water, electricity, etc. 233A Further protection of essential supplies 233B Protection of supplies of goods and services 233C Powers to amend section 233B and Schedule 4ZZA 234 Getting in the company’s property. 235 Duty to co-operate with office-holder. 236 Inquiry into company’s dealings, etc. 237 Court’s enforcement powers under s. 236. 238 Transactions at an undervalue (England and Wales). 239 Preferences (England and Wales). 240 “Relevant time” under ss. 238, 239. 241 Orders under ss. 238, 239. 242 Gratuitous alienations (Scotland). 243 Unfair preferences (Scotland). 244 Extortionate credit transactions. 245 Avoidance of certain floating charges. 246 Unenforceability of liens on books, etc. 246ZA Fraudulent trading: administration 246ZB Wrongful trading: administration 246ZC Proceedings under section 246ZA or 246ZB 246ZD Power to assign 246ZE Decisions by creditors and contributories: general 246ZF Deemed consent procedure 246ZG Power to amend sections 246ZE and 246ZF 246A Remote attendance at meetings 246B Use of websites 246C Creditors' ability to opt out of receiving certain notices 247 “Insolvency” and “go into liquidation”. 248 “Secured creditor”, etc. 248A “Opted-out creditor” 249 “Connected” with a company. 250 “Member” of a company. 251 Expressions used generally. 251A Debt relief orders 251B Making of application 251C Duty of official receiver to consider and determine application 251D Presumptions applicable to the determination of an application 251E Making of debt relief orders 251F Effect of debt relief order on other debt management arrangements 251G Moratorium from qualifying debts 251H The moratorium period 251I Discharge from qualifying debts 251J Providing assistance to official receiver etc 251K Objections and investigations 251L Power of official receiver to revoke or amend a debt relief order 251M Powers of court in relation to debt relief orders 251N Inquiry into debtor's dealings and property 251O False representations and omissions 251P Concealment or falsification of documents 251Q Fraudulent disposal of property 251R Fraudulent dealing with property obtained on credit 251S Obtaining credit or engaging in business 251T Offences: supplementary 251U Approved intermediaries 251V Debt relief restrictions orders and undertakings 251W Register of debt relief orders etc 251X Interpretation 252 Interim order of court. 253 Application for interim order. 254 Effect of application. 255 Cases in which interim order can be made. 256 Nominee’s report on debtor’s proposal. 256A Debtor’s proposal and nominee’s report. 257 Consideration of debtor's proposal by creditors 258 Approval of debtor's proposal 259 Report of decisions to court. 260 Effect of approval. 261 Additional effect on undischarged bankrupt 262 Challenge of creditors' decision. 262A False representations etc. 262B Prosecution of delinquent debtors. 262C Arrangements coming to an end prematurely. 263 Implementation and supervision of approved voluntary arrangement. 263A Availability 263B Decision 263C Result 263D Approval of voluntary arrangement 263E Implementation 263F Revocation 263G Offences 263H Bankruptcy applications to an adjudicator 263I Debtors against whom an adjudicator may make a bankruptcy order 263J Conditions applying to bankruptcy application 263K Determination of bankruptcy application 263L Adjudicator's requests for further information 263M Making of bankruptcy order 263N Refusal to make a bankruptcy order: review and appeal etc. 263O False representations and omissions 264 Who may present a bankruptcy petition. 265 Creditor's petition: debtors against whom the court may make a bankruptcy order. 266 Other preliminary conditions. 267 Grounds of creditor’s petition. 268 Definition of “inability to pay”, etc.; the statutory demand. 269 Creditor with security. 270 Expedited petition. 271 Proceedings on creditor’s petition. 272 Grounds of debtor’s petition. 273 Appointment of insolvency practitioner by the court. 274 Action on report of insolvency practitioner. 274A Debtor who meets conditions for a debt relief order 275 Summary administration. 276 Default in connection with voluntary arrangement. 277 Petition based on criminal bankruptcy order. 278 Commencement and continuance. 279 Duration 280 Discharge by order of the court. 281 Effect of discharge. 281A Post-discharge restrictions 282 Court’s power to annul bankruptcy order. 283 Definition of bankrupt’s estate. 283A Bankrupt’s home ceasing to form part of estate 284 Restrictions on dispositions of property. 285 Restriction on proceedings and remedies. 286 Power to appoint interim receiver. 287 Powers of interim receiver. 288 Statement of affairs. 289 Investigatory duties of official receiver 290 Public examination of bankrupt. 291 Duties of bankrupt in relation to official receiver. 291A First trustee in bankruptcy 292 Appointment of trustees: general provision 293 Summoning of meeting to appoint first trustee. 294 Power of creditors to requisition meeting. 295 Failure of meeting to appoint trustee. 296 Appointment of trustee by Secretary of State. 297 Special cases. 298 Removal of trustee; vacation of office. 299 Release of trustee. 300 Vacancy in office as trustee. 301 Creditors’ committee. 302 Exercise by Secretary of State of functions of creditors’ committee. 303 General control of trustee by the court. 304 Liability of trustee. 305 General functions of trustee. 306 Vesting of bankrupt’s estate in trustee. 306A Property subject to restraint order 306AA Property released from detention 306B Property in respect of which receivership or administration order made 306BA Property in respect of which realisation order made 306C Property subject to certain orders where confiscation order discharged or quashed 307 After-acquired property. 308 Vesting in trustee of certain items of excess value. 308A Vesting in trustee of certain tenancies. 309 Time-limit for notice under s. 307 or 308. 310 Income payments orders. 310A Income payments agreement 311 Acquisition by trustee of control. 312 Obligation to surrender control to trustee. 313 Charge on bankrupt’s home. 313A Low value home: application for sale, possession or charge 314 Powers of trustee. 315 Disclaimer (general power). 316 Notice requiring trustee’s decision. 317 Disclaimer of leaseholds. 318 Disclaimer of dwelling house. 319 Disclaimer of land subject to rentcharge. 320 Court order vesting disclaimed property. 321 Order under s. 320 in respect of leaseholds. 322 Proof of debts. 323 Mutual credit and set-off. 324 Distribution by means of dividend. 325 Claims by unsatisfied creditors. 326 Distribution of property in specie. 327 Distribution in criminal bankruptcy. 328 Priority of debts. 329 Debts to spouse. 330 Final distribution. 331 Final report. 332 Saving for bankrupt’s home. 333 Duties of bankrupt in relation to trustee. 334 Stay of distribution in case of second bankruptcy. 335 Adjustment between earlier and later bankruptcy estates. 335A Rights under trusts of land. 336 Rights of occupation etc. of bankrupt’s spouse or civil partner. 337 Rights of occupation of bankrupt. 338 Payments in respect of premises occupied by bankrupt. 339 Transactions at an undervalue. 340 Preferences. 341 “Relevant time” under ss. 339, 340. 342 Orders under ss. 339, 340. 342A Recovery of excessive pension contributions. 342B Orders under section 342A. 342C Orders under section 342A: supplementary. 342D Recovery of excessive contributions in pension-sharing cases. 342E Orders under section 339 or 340 in respect of pension-sharing transactions. 342F Orders under section 339 or 340 in pension-sharing cases: supplementary. 343 Extortionate credit transactions. 344 Avoidance of general assignment of book debts. 345 Contracts to which bankrupt is a party. 346 Enforcement procedures. 347 Distress, etc. 348 Apprenticeships, etc. 349 Unenforceability of liens on books, etc. 349A Arbitration agreements to which bankrupt is party. 350 Scheme of this Chapter. 351 Definitions. 352 Defence of innocent intention. 353 Non-disclosure. 354 Concealment of property. 355 Concealment of books and papers; falsification. 356 False statements. 357 Fraudulent disposal of property. 358 Absconding. 359 Fraudulent dealing with property obtained on credit. 360 Obtaining credit; engaging in business. 361 Failure to keep proper accounts of business. 362 Gambling. 363 General control of court. 364 Power of arrest. 365 Seizure of bankrupt’s property. 366 Inquiry into bankrupt’s dealings and property. 367 Court’s enforcement powers under s. 366. 368 Provision corresponding to s. 366, where interim receiver appointed. 369 Order for production of documents by inland revenue. 370 Power to appoint special manager. 371 Re-direction of bankrupt’s letters, etc. 372 Supplies of gas, water, electricity, etc. 372A Further protection of essential supplies 373 Jurisdiction in relation to insolvent individuals. 374 Insolvency districts. 375 Appeals etc. from courts exercising insolvency jurisdiction. 376 Time-limits. 377 Formal defects. 378 Exemption from stamp duty. 379 Annual report. 379ZA Creditors' decisions: general 379ZB Deemed consent procedure 379ZC Power to amend sections 379ZA and 379ZB 379A Remote attendance at meetings 379B Use of websites 379C Creditors' ability to opt out of receiving certain notices 380 Introductory. 381 “Bankrupt” and associated terminology. 382 “Bankruptcy debt” , “liability” 383 “Creditor”, “security”, etc. 383A “Opted-out creditor” 384 “Prescribed” and “the rules”. 385 Miscellaneous definitions. 386 Categories of preferential debts. 387 “The relevant date”. 387A Financial institutions and their non-preferential debts 388 Meaning of “act as insolvency practitioner” 389 Acting without qualification an offence. 389A Authorisation of nominees and supervisors. 389B Official receiver as nominee or supervisor 390 Persons not qualified to act as insolvency practitioners. 390A Authorisation 390B Partial authorisation: acting in relation to partnerships 391 Recognised professional bodies 391A Application for recognition as recognised professional body 391B Application of regulatory objectives 391C Meaning of “regulatory functions” and “regulatory objectives” 391D Directions 391E Directions: procedure 391F Financial penalty 391G Financial penalty: procedure 391H Appeal against financial penalty 391I Recovery of financial penalties 391J Reprimand 391K Reprimand: procedure 391L Revocation of recognition at instigation of Secretary of State 391M Orders under section 391L: procedure 391N Revocation of recognition at request of body 391O Direct sanctions orders 391P Application for, and power to make, direct sanctions order 391Q Direct sanctions order: conditions 391R Direct sanctions direction instead of order 391S Power for Secretary of State to obtain information 391T Compliance orders 398A Appointment etc of adjudicators and assistants 399 Appointment, etc. of official receivers. 400 Functions and status of official receivers. 401 Deputy official receivers and staff. 402 Official Petitioner. 403 Insolvency Services Account. 404 Investment Account. 405 Application of income in Investment Account; adjustment of balances. 406 Interest on money received by liquidators or trustees in bankruptcy and invested. 407 Unclaimed dividends and undistributed balances. 408 Adjustment of balances 409 Annual financial statement and audit. 410 Extent of this Part. 411 Company insolvency rules. 412 Individual insolvency rules (England and Wales). 413 Insolvency Rules Committee. 414 Fees orders (company insolvency proceedings). 415 Fees orders (individual insolvency proceedings in England and Wales). 415A Fees orders (general) 415B Monetary limits (company moratorium) 416 Monetary limits (companies winding up). 417 Money sum in s. 222. 417A Money sums (company moratorium). 418 Monetary limits (bankruptcy). 419 Regulations for purposes of Part XIII. 420 Insolvent partnerships. 421 Insolvent estates of deceased persons. 421A Insolvent estates: joint tenancies. 422 Formerly authorised banks. 422A Meaning of “relevant offence” 423 Transactions defrauding creditors. 424 Those who may apply for an order under s. 423. 425 Provision which may be made by order under s. 423. 426 Co-operation between courts exercising jurisdiction in relation to insolvency. 426A Disqualification from Parliament (England and Wales and Northern Ireland) 426B Devolution 426C Irrelevance of privilege 427 Disqualification from Parliament (Scotland ...) 428 Exemptions from Restrictive Trade Practices Act. 429 Disabilities on revocation of administration order against an individual. 430 Provision introducing Schedule of punishments. 431 Summary proceedings. 432 Offences by bodies corporate. 433 Admissibility in evidence of statements of affairs, etc. 434 Crown application. 434A Introductory 434B Representation of corporations in decision procedures and at meetings 434C Legal professional privilege 434D Enforcement of company's filing obligations 434E Application of filing obligations to overseas companies 435 Meaning of “associate”. 436 Expressions used generally. 436A Proceedings under EU Regulations: modified definition of property 436B References to things in writing 437 Transitional provisions, and savings. 438 Repeals. 439 Amendment of enactments. 440 Extent (Scotland). 441 Extent (Northern Ireland). 442 Extent (other territories). 443 Commencement. 444 Citation. SCHEDULE ZA1 Moratorium: Eligible companies SCHEDULE ZA2 Moratorium: contract or other instrument involving financial services SCHEDULE B1 ADMINISTRATION SCHEDULE 1 Powers of Administrator or Administrative Receiver SCHEDULE 2 Powers of a Scottish Receiver (Additional to Those Conferred on him by the Instrument of Charge) SCHEDULE 2A EXCEPTIONS TO PROHIBITION ON APPOINTMENT OF ADMINISTRATIVE RECEIVER: SUPPLEMENTARY PROVISIONS SCHEDULE 3 Orders in Course of Winding Up Pronounced in Vacation (Scotland) SCHEDULE 4 Powers of Liquidator in a Winding Up SCHEDULE 4ZZA Protection of supplies under section 233B: exclusions SCHEDULE 4ZA Conditions for making a debt relief order SCHEDULE 4ZB Debt relief restrictions orders and undertakings SCHEDULE 4A SCHEDULE 5 Powers of Trustee in Bankruptcy SCHEDULE 6 The Categories of Preferential Debts SCHEDULE 8 Provisions Capable of Inclusion in Company Insolvency Rules SCHEDULE 9 Provisions Capable of Inclusion in Individual Insolvency Rules SCHEDULE 10 Punishment of Offences under this Act SCHEDULE 11 Transitional Provisions and Savings SCHEDULE 12 Enactments Repealed SCHEDULE 13 Consequential Amendments of Companies Act 1985 SCHEDULE 14 Consequential Amendments of other Enactments
What to do with it
As published
244 Extortionate credit transactions.
(1) This section applies as does section 238, and where the company is, or has been, a party to a transaction for, or involving, the provision of credit to the company.
(2) The court may, on the application of the office-holder, make an order with respect to the transaction if the transaction is or was extortionate and was entered into in the period of 3 years ending with the day on which the company entered administration or went into liquidation.
(3) For the purposes of this section a transaction is extortionate if, having regard to the risk accepted by the person providing the credit—
(a) the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit, or
(b) it otherwise grossly contravened ordinary principles of fair dealing;
and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this section is or, as the case may be, was extortionate.
(4) An order under this section with respect to any transaction may contain such one or more of the following as the court thinks fit, that is to say—
(a) provision setting aside the whole or part of any obligation created by the transaction,
(b) provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held,
(c) provision requiring any person who is or was a party to the transaction to pay to the office-holder any sums paid to that person, by virtue of the transaction, by the company,
(d) provision requiring any person to surrender to the office-holder any property held by him as security for the purposes of the transaction,
(e) provision directing accounts to be taken between any persons.
(5) The powers conferred by this section are exercisable in relation to any transaction concurrently with any powers exercisable in relation to that transaction as a transaction at an undervalue or under section 242 (gratuitious alienations in Scotland).
Your wording
Your change, as a redline
244 Extortionate credit transactions.
(1) This section applies as does section 238, and where the company is, or has been, a party to a transaction for, or involving, the provision of credit to the company.
(2) The court may, on the application of the office-holder, make an order with respect to the transaction if the transaction is or was extortionate and was entered into in the period of 3 years ending with the day on which the company entered administration or went into liquidation.
(3) For the purposes of this section a transaction is extortionate if, having regard to the risk accepted by the person providing the credit—
(a) the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit, or
(b) it otherwise grossly contravened ordinary principles of fair dealing;
and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this section is or, as the case may be, was extortionate.
(4) An order under this section with respect to any transaction may contain such one or more of the following as the court thinks fit, that is to say—
(a) provision setting aside the whole or part of any obligation created by the transaction,
(b) provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held,
(c) provision requiring any person who is or was a party to the transaction to pay to the office-holder any sums paid to that person, by virtue of the transaction, by the company,
(d) provision requiring any person to surrender to the office-holder any property held by him as security for the purposes of the transaction,
(e) provision directing accounts to be taken between any persons.
(5) The powers conferred by this section are exercisable in relation to any transaction concurrently with any powers exercisable in relation to that transaction as a transaction at an undervalue or under section 242 (gratuitious alienations in Scotland).
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.