Singapore legislation
Section 72K
Section 72K
Restraint of proceedings and disposition of property, etc., during specified period
(1)
During the specified period in respect of a company (in simplified debt restructuring) —
no order may be made, and no resolution may be passed, for the winding up of the company;
no receiver or manager may be appointed over any property or undertaking of the company;
no proceedings (other than proceedings under section 72M) may be commenced or continued against the company, except with the leave of the Court and subject to any terms as the Court may impose; (d)no execution, distress or other legal process may be commenced, continued or levied against any property of the company, except with the leave of the Court and subject to any terms as the Court may impose;
no step may be taken to enforce any security over any property of the company, or to repossess any goods under any chattels leasing agreement, hire-purchase agreement or retention of title agreement, except with the leave of the Court and subject to any terms as the Court may impose; and
despite sections 18 and 18A of the Conveyancing and Law of Property Act 1886, no right of re‑entry or forfeiture under any lease in respect of any premises occupied by the company may be enforced, except with the leave of the Court and subject to any terms as the Court may impose.
(2)
Subsection (1) does not affect —
the exercise of any legal right under any arrangement (including a set‑off arrangement or a netting arrangement) that may be prescribed by regulations made under section 72V; or
the commencement or continuation of any proceedings that may be so prescribed.
(3)
A company (in simplified debt restructuring) that intentionally or knowingly disposes of the property of the company during the specified period in respect of the company, other than in good faith and in the ordinary course of business of the company, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
(4)
An officer of a company mentioned in subsection (3) who —
consented or connived, or conspired with others, to effect the disposal of the property of the company; (b)is in any other way, whether by act or omission, knowingly concerned in, or party to, the disposal of the property of the company; or
knew or ought reasonably to have known that the property would be or is being disposed of and failed to take all reasonable steps to prevent or stop the disposal of the property of the company,shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years, whether or not the company is convicted of an offence under subsection (3).
(5)
In this section, “officer”, in relation to a company, means a director or secretary of the company or a person employed in an executive capacity by the company.