Companies Act 2014 section 773

Costs of applicant for order for sale of shares

Section 773 deals with how the costs of an applicant who obtains a court order for the sale of shares under section 772 are to be paid from the sale proceeds, and establishes the applicant's priority over other interested parties in receiving those proceeds.

• Where the court orders a sale of shares under section 772, it may also direct that the applicant's costs be paid from the sale proceeds.
• The applicant has a priority right to receive their costs from the proceeds before any other person with an interest in the shares receives anything.
• This ensures the applicant is not left out of pocket for bringing the application that led to the share sale.
• The provision effectively creates a first charge on the sale proceeds in favour of the applicant's costs.

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