In forceAmended2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 5A · Simplified Restructuring of Debts

72K. Restraint of proceedings and disposition of property, etc., during moratorium period

Amended

Last amended by an amending law of 2025. 3 amendments in all.

(1)

During the moratorium period in respect of a company that has entered into the simplified debt restructuring programme under section 72E —

(a)

no order may be made, and no resolution may be passed, for the winding up of the company;

(b)

no receiver or manager may be appointed over any property or undertaking of the company;

(c)

no proceedings may be commenced or continued against the company, except with the permission of the Court and subject to any terms as the Court may impose; (d)no enforcement order or other legal process may be issued, continued or executed, and no distress may be levied, against any property of the company, except with the permission of the Court and subject to any terms as the Court may impose;

(e)

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 permission of the Court and subject to any terms as the Court may impose; and

(f)

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 permission of the Court and subject to any terms as the Court may impose.

(2)

Subsection (1) does not affect —

(a)

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

(b)

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 moratorium 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 —

(a)

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

(c)

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.

Terms defined in this Act

chattels leasing agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
company
Defined · s 2
“company” has the meaning given by section 4(1) of the Companies Act 1967;
Open s 2
company (in simplified debt restructuring)
Defined · s 72A
“company (in simplified debt restructuring)” means a company that is accepted by the Official Receiver into the simplified debt restructuring programme under section 72G, and that has not been discharged from the simplified debt restructuring programme under section 72Q;
Open s 72A
Court
Defined · s 2
“Court” means the General Division of the High Court;
Open s 2
director
Defined · s 61
“director” has the meaning given by section 4(1) of the Companies Act 1967;
Open s 61
goods
Defined · s 273
“goods” includes all chattels personal;
Open s 273
hire-purchase agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
netting arrangement
Defined · s 61
“netting arrangement” means an arrangement under which 2 or more claims or obligations can be converted into a net claim or obligation, and includes a close‑out netting arrangement (under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt);
Open s 61
officer
Defined · s 61
“officer”, in relation to a corporation, includes —(a)a director or secretary of the corporation, or a person employed in an executive capacity by the corporation;(b)a receiver and manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and(c)a liquidator of a company appointed in a voluntary winding up,but does not include —(d)a receiver who is not also a manager;(e)a receiver and manager appointed by the Court;(f)a liquidator appointed by the Court or by the creditors; or(g)a judicial manager appointed under Part 7;
Open s 61
property
Defined · s 2
“property” includes —(a)money, goods, things in action, land and every description of property, wherever situated; and(b)obligations and every description of interest, whether present or future or vested or contingent, arising out of or incidental to property;
Open s 2
regulations
Defined · s 2
“regulations” means regulations made under section 449;
Open s 2
retention of title agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
security
Defined · s 61
“security” means any mortgage, charge, pledge, lien or other security recognised by law;
Open s 61
set‑off arrangement
Defined · s 61
“set‑off arrangement” means an arrangement under which 2 or more debts, claims or obligations can be set off against each other;
Open s 61
simplified debt restructuring programme
Defined · s 72A
“simplified debt restructuring programme” means the programme established in section 72C;
Open s 72A