Companies Act 2014 section 774

Proceeds of sale following court ordered sale of shares

Section 774 sets out how the proceeds from a court-ordered sale of shares under section 772 are to be handled and distributed to the persons beneficially interested in those shares.

• Sale proceeds, after deducting the costs of sale, must be paid into court for the benefit of those beneficially interested in the shares.
• Any beneficially interested person may apply to the court for payment of all or part of the proceeds.
• Where the applicant was the sole beneficial owner at the time of sale, the court will order payment of the full proceeds, less any costs awarded under section 773(1) and any accrued interest.
• Where other persons were also beneficially interested, the court will order payment of a proportionate share of the proceeds, reflecting the ratio of the applicant's interest to the total value of the shares.