COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 291 Effect of floating charge.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 291

Effect of floating charge.

291.(1) Subject to sub-section (2), where any part of the property of a
company which is being wound up consists of land of any tenure burdened with
onerous covenants, of shares or stock in companies, of unprofitable contracts,
or of any other property that is unsaleable, or not readily saleable, by
reason of its binding the possessor thereof to the performance of any onerous
act or to the payment of any sum of money, the liquidator of the company,
notwithstanding that he has endeavoured to sell or has taken possession of the
property or exercised any act of ownership in relation thereto, may, with the
leave of the court and subject to the provisions of this section, by writing
signed by him, at any time within twelve months after the commencement of the
winding up or such extended period as may be allowed by the court, disclaim
the property.

(2) Where any such property as aforesaid has not come to the knowledge of
the liquidator within one month after the commencement of the winding up, the
power under this section of disclaiming the property may be exercised at any
time within twelve months after he has become aware thereof or such extended
period as may be allowed by the court.

(3) The disclaimer shall operate to determine, as from the date of disclaimer,
the rights, interest and liabilities of the company, and the property of
the company, in or in respect of the property disclaimed, but shall not,
except so far as is necessary for the purpose of releasing the company and the
property of the company from liability, affect the rights or liabilities of
any other person.

(4) The court, before or on granting leave to disclaim, may require such
notices to be given to persons interested, and impose such terms as a
condition of granting leave, and make such other order in the matter as
the court thinks just.

(5) The liquidator shall not be entitled to disclaim any property under this
section in any case where an application in writing has been made to him by
any persons interested in the property requiring him to decide whether he will
or will not disclaim and the liquidator has not, within a period of
twenty-eight days after the receipt of the application or such further period
as may be allowed by the court, given notice to the applicant that he intends
to apply to the court for leave to disclaim, and, in the case of a contract,
if the liquidator, after such an application as aforesaid, does not within the
said period or further period disclaim the contract, the company shall be
deemed to have adopted it.

(6) The court may, on the application of any person who is, as against
the liquidator, entitled to the benefit or subject to the burden of a contract
made with the company, make an order rescinding the contract on such terms as
to payment by or to either party of damages for the non-performance of the
contract, or otherwise as the court thinks just, and any damages payable under
the order to any such person may be proved by him as a debt in the winding up.

(7) Subject to sub-section (8), the court may, on an application by any person
who either claims any interest in any disclaimed property or is under any
liability not discharged by this Act in respect of any disclaimed property and
on hearing any such persons as it thinks fit, make an order for the vesting of
the property in or the delivery of the property to any persons entitled
thereto, or to whom it may seem just that the property should be delivered by
way of compensation for such liability as aforesaid, or a trustee for him, and
on such terms as the court thinks just, and on any such vesting order being
made, the property comprised therein shall vest accordingly in the person
therein named in that behalf without any conveyance or assignment for the
purpose.

(8) Where the property disclaimed is of a leasehold nature, the court shall
not make a vesting order in favour of any person claiming under the company,
whether as under-lessee or as mortgagee by demise, except upon the terms of
making that person

(a)subject to the same liabilities and obligations as those to which
the company was subject under the lease in respect of the property at the
commencement of the winding up; or

(b)if the court thinks fit, subject only to the same liabilities and
obligations as if the lease had been assigned to that person at that date;

(9) Any person injured by the operation of a disclaimer under this section
shall be deemed to be a creditor of the company to the amount of the injury,
and may accordingly prove the amount as a debt in the winding up.[

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 291