Companies Act 2014 section 530

Power to deal with charged property, etc.

Section 530 deals with the examiner's power, with court approval, to dispose of company property that is subject to security charges or hire-purchase agreements in order to facilitate the company's survival as a going concern.

• The court may authorise an examiner to dispose of company property subject to floating charges, fixed charges, or hire-purchase agreements where doing so would likely help the company survive as a going concern.
• Where property subject to a floating charge is sold, the charge holder retains the same priority over any replacement property; where property subject to a fixed charge or hire-purchase agreement is sold, the net proceeds must be applied to discharge the secured debts, with any shortfall made good.
• Where sale proceeds must be applied against multiple securities, they are distributed in order of the priorities of those securities.
• The examiner must deliver a certified copy of any such court order to the Registrar within seven days, and failure to do so without reasonable excuse is a category 4 offence.