Companies Act 2014

552.

Cessation of protection of company and termination of appointment of examiner

552. (1) Subject to the provisions of that section, the protection granted by virtue of section 520 to a company shall cease—

(a) on the coming into effect of a compromise or scheme of arrangement under this Part in relation to the company; or

(b) on such earlier date as the court may direct.

F298[(1A) Where the court is making an order in accordance with subsection (1)(b), it may take into account:

(a) that the protection granted by virtue of section 520 no longer fulfils the objective of supporting the negotiations on a scheme of arrangement;

(b) where the company or the examiner has requested that the protection granted by virtue of section 520 be ceased;

(c) one or more creditors or one or more classes of creditors are, or would be, unfairly prejudiced by the continuation of the protection granted by virtue of section 520;

(d) that the continuation of the protection granted by virtue of section 520 would likely give rise to the insolvency of a creditor of the company.]

(2) Where a company ceases to be under the protection of the court, the appointment of the examiner shall terminate on the date of such cessation.

Annotations:

Amendments:

F298

Inserted (27.07.2022) by European Union (Preventive Restructuring) Regulations 2022 (S.I. No. 380 of 2022) reg. 19, subject to restriction on application in reg. 3.