Credit Institutions (Stabilisation) Act 2010

22.

Effect of appointment of special manager.

22.— (1) While a relevant institution is under special management—

( a) all functions which, but for this paragraph, would be vested in the directors of the relevant institution (whether by virtue of its memorandum of association or articles of association or otherwise) vest in the special manager,

( b) no proceedings for its winding up shall be commenced without the prior consent in writing of the Minister,

( c) a resolution for its winding up is of no effect without the prior consent in writing of the Minister,

( d) no petition can be presented for the appointment of an examiner to the relevant institution or to a related company (within the meaning of section 4(5) of the Companies (Amendment) Act 1990) without the prior consent in writing of the Minister,

( e) no inspector can be appointed or an inquiry commenced under the Companies Act 1990 without the prior consent in writing of the Minister,

( f) subject to subsection (2) , no receiver over any part of the property of the relevant institution shall be appointed without the prior consent in writing of the Minister,

( g) subject to subsection (2) , no enforcement (whether by attachment, sequestration, distress or execution) of any judgment or order shall be put into force against any part of the property of the relevant institution without the prior consent in writing of the Minister, unless the party seeking to do so is the Minister,

( h) subject to subsection (2) , where any claim against a relevant institution is secured by security affecting the whole or any part of the assets of the relevant institution, any person other than the Minister who wishes to realise the whole or any part of that security shall give written notice to the Minister 90 days (or a shorter period to which the Minister agrees) before such realisation, and

( i) if the special manager so elects, the powers of the relevant institution exercisable by a general meeting of the relevant institution are exercisable only by the special manager and subject to the prior consent in writing of the Minister.

(2) Paragraphs (f), (g) and (h) of subsection (1) do not apply to the Bank, the European Central Bank or any other national central bank within the Eurosystem.

(3) Except as provided by this Act, the business of a relevant institution under special management shall continue without interruption as a going concern, and no agreement (including a contract of employment or service), policy, transaction, bank account or bank mandate, right, title, claim, debt, proceeding or obligation of the relevant institution or right, claim or proceeding against it is avoided, cancelled, stayed or otherwise affected by reason only of the appointment of the special manager.

(4) While a relevant institution is under special management—

( a) the relevant institution shall not convene or hold any general meeting unless the special manager so directs,

( b) the rights and powers of shareholders and members under any enactment or relevant agreement stand suspended and are not exercisable,

( c) section 205 of the Companies Act 1963 does not apply, and

( d) no derivative action may be brought in respect of the relevant institution.