Companies Act 2014 section 1167

Certain provisions not to apply where court so orders

Section 1167 allows the court, when confirming a division of a public limited company, to disapply certain prohibitions on financial assistance and capital reduction where necessary for the division to take effect properly.

• When a court confirms a division, it may include provisions in its order to set aside restrictions that would otherwise prevent the division from being carried out effectively.
• The court may permit the giving of financial assistance for the acquisition of shares, which would normally be prohibited under the Act.
• The court may also permit a reduction in company capital, which would normally be restricted under the Act.
• These capital reduction powers do not apply to companies subject to the bank recovery and resolution framework under the European Union (Bank Recovery and Resolution) Regulations 2015.