PART 10CREDITORS' AND LIQUIDATION COMMITTEES
CHAPTER 6Miscellaneous
Dealings by committee members and others: winding up10
1
This rule applies in a creditors' voluntary winding up and a winding up by the court to a person who is, or has been in the preceding 12 months—
a
a member of the committee;
b
a member's representative; or
c
an associate of a member, or of a member's representative.
2
Such a person must not enter into a transaction as a result of which that person would—
a
receive out of the company's assets any payment for services given or goods supplied in connection with the liquidation;
b
obtain a profit from the liquidation; or
c
acquire any part of the company's assets.
3
However such a transaction may be entered into—
a
with the prior sanction of the committee, where it is satisfied (after full disclosure of the circumstances) that the person will be giving full value in the transaction;
b
with the prior permission of the court; or
c
if that person does so as a matter of urgency, or by way of performance of a contract in force before the date on which the company went into liquidation, and that person obtains the court's permission for the transaction, having applied for it without undue delay.
4
Neither a member nor a representative of a member who is to participate directly or indirectly in a transaction may vote on a resolution to sanction that transaction.
5
The court may, on the application of an interested person—
a
set aside a transaction which appears to it to be contrary to this rule; and
b
make such other order about the transaction as it thinks just, including an order requiring a person to whom this rule applies to account for any profit obtained from the transaction and compensate the insolvent estate for any resultant loss.
6
The court will not make an order under the previous paragraph in respect of an associate of a member of the committee or an associate of a member's representative, if satisfied that the associate or representative entered into the relevant transaction without having any reason to suppose that in doing so the associate or representative would contravene this rule.
7
The costs of the application are not payable as an expense of the liquidation unless the court orders otherwise.