Companies Act 2016 · Updated to 31 Jan 2025 · Chapter III
398A. Recovery of secured property during voluntary arrangement
Feedback & supportNotwithstanding section 398, a secured creditor may take possession of, exercise any other right in relation to, or otherwise recover, the secured property during a moratorium in a voluntary arrangement if—
voluntary arrangement
“voluntary arrangement” means a composition in satisfaction of a company’s debts or a scheme of arrangement of a company’s affairs under Subdivision 1. Subdivision 1 Corporate Voluntary Arrangement Non-application of this Subdivision
the secured property is not required by the company for the voluntary arrangement;
the moratorium poses a high risk to the existence of the secured property; or
the value of the secured property decreases due to the moratorium.
Companies 425
A secured creditor shall notify and obtain the consent from the nominee before taking possession of the secured property under subsection (1).
nominee
“nominee” means any person who is qualified to be appointed as an insolvency practitioner whose powers and duties shall include the powers and duties specified in the Seventh Schedule;
For the purposes of this section, “secured property” means any property other than immovable property which is subject to a charge or any other security.