Part XVU.K. Orders Imposing Restrictions on Shares ([F1Section 445])

Textual Amendments

Modifications etc. (not altering text)

C1Pt. 15 power to apply (with modifications) (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), ss. 135, 154 (with Sch. 5)

454 Consequence of order imposing restrictions.U.K.

(1)So long as any shares are directed to be subject to the restrictions of this Part [F2then, subject to any directions made in relation to an order [F3pursuant to section 445(1A) or 456(1A)]]

(a)any transfer of those shares or, in the case of unissued shares, any transfer of the right to be issued with them, and any issue of them, is void;

(b)no voting rights are exercisable in respect of the shares;

(c)no further shares shall be issued in right of them or in pursuance of any offer made to their holder; and

(d)except in a liquidation, no payment shall be made of any sums due from the company on the shares, whether in respect of capital or otherwise.

(2)Where shares are subject to the restrictions of subsection (1)(a), any agreement to transfer the shares or, in the case of unissued shares, the right to be issued with them is void (except [F4such agreement or right as may be made or exercised under the terms of directions made by the Secretary of State or the court under [F5section 445(1A) or 456(1A)] or]an agreement to [F6transfer] the shares on the making of an order under section 456(3)(b) below).

(3)Where shares are subject to the restrictions of subsection (1)(c) or (d), an agreement to transfer any right to be issued with other shares in right of those shares, or to receive any payment on them (otherwise than in a liquidation) is void (except [F7such agreement or right as may be made or exercised under the terms of directions made by the Secretary of State or the court under [F8section 445(1A) or 456(1A)] or]an agreement to transfer any such right on the [F6transfer] of the shares on the making of an order under section 456(3)(b) below).

Extent Information

E1Act: The provisions of this Act that remain in force extended (Northern Ireland) (1.1.2007, 20.1.2007, 6.4.2007, 30.9.2007, 1.10.2007, 1.11.2007, 15.12.2007, 6.4.2008 and 1.10.2008 for certain purposes and otherwise 1.10.2009) by Companies Act 2006 (c. 46), ss. 2, 1284(1), 1300; S.I. 2006/3428, art. 3(2)(e) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5 (as amended by S.I. 2007/3495, art. 11, Sch. 5)); S.I. 2007/1093, art. 2(1)(e); S.I. 2007/2194, arts. 2-5 (with art. 12); S.I. 2007/2607, art. 2(2); S.I. 2007/3495, arts. 3, 5 (with arts. 7, 12); S.I. 2008/1886 arts. 1(3), 2(d) (with arts. 6, 7); S.I. 2008/2860, art. 3(z) (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802, art. 18, Sch., S.I. 2009/1802, art. 18, Sch.))

Textual Amendments

F2Words in s. 454(1) inserted by S.I. 1991/1646, reg. 6(a)

F4Words in s. 454(2) inserted by S.I. 1991/1646, reg. 6(b)

F7Words in s. 454(3) inserted by S.I. 1991/1646, reg. 6(c)