Companies Act 2014 section 558ZAC

Effect on certain sections where application to relevant court

Section 558ZAC provides that certain statutory time limits within the rescue process for small and micro companies are paused whenever a matter under Part 10A is before the court.

• Where court proceedings arise under Part 10A, specific time limits built into the rescue process are suspended for the duration of those proceedings.
• The suspended time limits relate to notifying creditors about excludable debts (section 558L), the process adviser's duty to call meetings of members and creditors (section 558T), and the process adviser's reporting obligations (section 558ZA).
• The suspension runs for the entire period during which the relevant court is considering the proceedings — the clock stops when the matter goes to court and restarts once the court has dealt with it.
• This ensures that the rescue process timetable is not undermined by unavoidable delays caused by court involvement, protecting both the company and its creditors.