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Section 649 of Insolvency Act CAP 53: Effect of moratorium on creditors and others

    

(1) While a moratorium has effect in respect of a company—
(a) an application for liquidation of the company may not be made; (b) a meeting of the company may be convened or requisitioned—
(i) only with the consent of the monitor or with the approval of the Court; and
(ii) if the Court gives approval, subject to such conditions as the Court may impose;
(c) a resolution for the liquidation of the company has no effect;
(d) the Court may not make an order for the liquidation of the company;
(e) an application for an administrator to be appointed in respect of the company may not be made and if made is of no effect;
(f) an administrator of the company may not be appointed under section 534 or 541;
(fa) an administrative receiver of the company may not be appointed;
(g) a landlord or other person to whom rent is payable may exercise a right of forfeiture in relation to premises let to the company in respect of a failure by the company to comply with any term of its tenancy of the premises— (i) only with the approval of the Court; and
(ii) if the Court gives approval, subject to such conditions as the Court may impose;
(h) steps may be taken to enforce any security over the company's property, or to repossess goods in the company's possession under a credit purchase transaction—
(i) only with the approval of the Court; and
(ii) if the Court gives approval, subject to such conditions as the Court may impose; and
(i) other proceedings (including execution or other legal process) may be commenced or continued, and distress may be levied, against the company or its property—
(i) only with the approval of the Court; and
(ii) if the Court gives approval, subject to such conditions as the Court may impose.
(2) If an application (other than an excepted application), for the liquidation of the company has been made before the beginning of the moratorium, section 429 does not apply in relation to a disposition of property, transfer of shares or alteration in status made during the moratorium.
(3) Subsection (1)(a) does not apply to an excepted application and, if such an application has been made before the beginning of the moratorium or is made during the moratorium, subsections (1)(b) and (c) do not apply to or with respect to the hearing of the application.
(4) For the purposes of this section, "excepted application" means an application under— (a) section 426; or
(b) a provision of any other enactment prescribed by the insolvency regulations for the purposes of this section.

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Disclaimer: This document is not to be taken as legal advise.

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