Companies (Amendment) Act, 1990
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Effect of petition to appoint examiner on creditors and others. |
5.—(1) During the period beginning with the presentation of a petition for the appointment of an examiner to a company and (subject to section 18 (3) or (4)) ending on the expiry of three months from that date or on the withdrawal or refusal of the petition, whichever first happens, the company shall be deemed to be under the protection of the court. | |
(2) For so long as a company is under the protection of the court in a case under this Act, the following provisions shall have effect— | ||
(a) no proceedings for the winding-up of the company may be commenced or resolution for winding-up passed in relation to that company and any resolution so passed shall be of no effect; | ||
(b) no receiver over any part of the property or undertaking of the company shall be appointed, or, if so appointed before the presentation of a petition under section 2 , shall, subject to section 6 , be able to act; | ||
(c) no attachment, sequestration, distress or execution shall be put into force against the property or effects of the company, except with the consent of the examiner; | ||
(d) where any claim against the company is secured by a charge on the whole or any part of the property, effects or income of the company, no action may be taken to realise the whole or any part of such security, except with the consent of the examiner; | ||
(e) no steps may be taken to repossess goods in the company's possession under any hire-purchase agreement (within the meaning of section 11 (8)), except with the consent of the examiner; | ||
(f) where, under any enactment, rule of law or otherwise, any person other than the company is liable to pay all or any part of the debts of the company— | ||
(i) no attachment, sequestration, distress or execution shall be put into force against the property or effects of such person in respect of the debts of the company, and | ||
(ii) no proceedings of any sort may be commenced against such person in respect of the debts of the company. | ||
(3) Subject to subsection (2), no other proceedings in relation to the company may be commenced except by leave of the court and subject to such terms as the court may impose and the court may on the application of the examiner make such order as it thinks proper in relation to any existing proceedings including an order to stay such proceedings. | ||
(4) Complaints concerning the conduct of the affairs of the company while it is under the protection of the court shall not constitute a basis for the making of an order for relief under section 205 of the Principal Act. |