Companies Act 2014 section 615

Disclaimer of onerous property in case of company being wound up

Section 615 enables a liquidator to disclaim onerous property belonging to a company being wound up, subject to court approval and specified time limits.

• Onerous property includes land with burdensome covenants, shares or stock, unprofitable contracts, and any other property that is unsaleable or difficult to sell because it obliges the holder to perform onerous acts or make payments
• The liquidator may disclaim onerous property with leave of the court within 12 months of the commencement of the winding up, or within 12 months of becoming aware of the property if it was not known within the first month — both periods may be extended by the court
• A disclaimer releases the company and its assets from all rights, interests and liabilities relating to the disclaimed property, but does not affect the rights or liabilities of any other person except as necessary to release the company from liability
• Any person who suffers loss as a result of a disclaimer is treated as a creditor of the company for the amount of the damages and may prove that amount as a debt in the winding up

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