Companies Act 2014 section 558N

Relevant court's power to stay proceedings or restrain further proceedings

Section 558N gives the court the power to pause or block legal proceedings against a small or micro company undergoing the rescue process, and to impose a range of protections during the rescue period.

• Where a process adviser has been appointed and the court believes there is a reasonable prospect of the company surviving as a going concern, it may stay or restrain proceedings against the company for the relevant period
• The court may also impose wide-ranging protections including blocking winding-up proceedings, preventing appointment of a receiver, stopping enforcement against the company's assets, and restricting secured creditors from realising their security
• Applications for these protections may be made by the company itself, its directors, or the process adviser, and must be notified to all interested parties, with creditors given the opportunity to be heard
• The "relevant period" for which these protections apply is either the rescue period or such other period as the court considers appropriate

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