Companies Act 2014 section 520

Effect of petition to appoint examiner on creditors and others

Section 520 sets out the protections that apply to a company and the restrictions imposed on creditors and other parties once a petition to appoint an examiner has been presented to the court.

• Court protection begins when the examiner petition is presented and ends after 70 days, or when the petition is withdrawn or refused, whichever comes first
• During the protection period, no winding up can be started, no receiver can act, and no creditor can enforce security or seize assets without the examiner's consent
• No new legal proceedings may be brought against the company without court permission, though employees retain the right to commence or continue actions against the company
• Complaints about the conduct of the company's affairs while under court protection cannot be used as grounds for a minority oppression remedy