Companies Act 2014

F377[Validity of floating charge in certain circumstances

598A

598A. In any winding up of a company under this Part, a floating charge created as part of a transaction that was –

(a) reasonable,

(b) immediately necessary for the implementation of a scheme of arrangement under Part 10, and

(c) carried out in accordance with a scheme of arrangement confirmed by a court under section 541,

shall not be declared to be invalid in full or in pfart under section 597 or section 598 on the basis that the transaction was detrimental to the general body of creditors of the company unless there are other circumstances in which the transaction should be declared invalid.]

Annotations:

Amendments:

F377

Inserted (27.07.2022) by European Union (Preventive Restructuring) Regulations 2022 (S.I. No. 380 of 2022) reg. 22, subject to restriction on application in reg. 3.