Companies Act 2016 · Updated to 31 Jan 2025 · Chapter III
368A. Power of Court to restrain proceedings, etc., against related company
Feedback & supportWhere the Court has granted a restraining order under subsection 368(1) or an extension of period of such order under subsection 368(2) in relation to a subject company, the Court may, on the application of a related company, grant a restraining order for a period of not more than the period of the order granted to the subject company.
When a related company makes an application under subsection (1), the related company shall—
publish a notice of the application in the manner as may be determined by the Registrar; and
unless the Court directs otherwise, send the notice of the application to each creditor of the related company who may be affected by a restraining order granted under subsection (1).
The Court may grant a restraining order to a related company if the Court is satisfied that—
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no order has been made, and no resolution has been passed, for the winding up of the related company;
the restraining order granted to the subject company under subsection 368(1) or (2) is in force;
the related company plays a necessary and integral role in the compromise or arrangement of the subject company;
the compromise or arrangement referred to in paragraph (c)
will be frustrated if one or more of the actions that may be restrained by the restraining order is taken against the related company; and
the creditors of the related company will not be unfairly prejudiced if a restraining order is granted.
A restraining order granted under subsection (1) may include one or more of the following orders:
no order be made, and no resolution may be passed, for the winding up of the related company;
no receiver or receiver and manager may be appointed over any undertaking or property of the related company;
no proceedings may be commenced or continued against the related company other than the proceedings under this section, section 366, 368C, 368D, 369A or 370, except with the leave of the Court and subject to any terms as the Court may impose;
no execution, distress or other legal process may be commenced, continued or levied against any property of the related company, except with the leave of the Court and subject to any terms as the Court may impose;
no steps may be taken to enforce any security over any property of the related company, or to repossess any goods held by the related company under any chattels leasing
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agreement, hire purchase agreement or retention of title agreement, except with the leave of the Court and subject to any terms as the Court may impose;
no right of re‑entry or forfeiture under any lease in respect of any premises occupied by the related company may be enforced except with the leave of the Court and subject to such any terms as the Court may impose.
The Court may, on application by the related company, grant an order to extend the period of the order granted under subsection (1) for a period of not more than the period of restraining order granted to the subject company under section 368.
The related company, any creditor of the related company or any receiver and manager of the whole or substantially the whole, of the undertaking or property of the related company, may apply to the Court for an order discharging or varying a restraining order granted under subsection (1).
The related company shall, within seven days after the date of an order granted under subsection (1), (5) or (6), lodge an office copy of the order with the Registrar.