Companies Act 2014 section 504

Certain provisions not to apply where court so orders

Section 504 allows the court, when confirming a company division, to override certain normal restrictions on financial assistance and capital reduction so that the division can be properly carried out.

• When a court confirms a division under this Chapter, it may include additional provisions in its order to enable the division to take effect properly
• The court may permit the giving of financial assistance for the acquisition of shares, which would normally be prohibited under section 82
• The court may permit a reduction in company capital, which would normally be restricted under section 84
• This provision mirrors section 481, which grants the same court powers in the context of mergers under Chapter 3