Insolvency Act · s 187

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187.
Proceedings under section 185 or 186
(1) On the hearing of an application under section 185 or 186, the liquidator may himself give evidence or call witnesses.

Insolvency 148
(2) Where under section 185 or 186 the Court makes a declaration, it may give such further directions as it thinks proper for giving effect to the declaration; and in particular, the Court may —
(a) provide for the liability of any person under the declaration to be a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in a mortgage or charge on assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf; and
(b) make such further order as may be necessary for enforcing any charge imposed under this subsection.
(3) Where the Court makes a declaration under section 185 or 186 in relation to a person who is a creditor of the company, it may direct that the whole or any part of any debt owed by the company to that person and any interest thereon shall rank in priority after all other debts owed by the company and after any interest on those debts.
(4) Sections 185 and 186 apply notwithstanding that the person concerned may be criminally liable in respect of matters on the ground of which the declaration under the section is to be made.
(5) For the purposes of subsection (2), “assignee” —
(a) includes a person to whom or in whose favour, by the directions of the person made liable, the debt, obligation, mortgage or charge was created, issued or transferred or the interest created; but
(b) does not include an assignee for valuable consideration (not including consideration by way of marriage or the formation of a civil partnership) given in good faith and without notice of any of the matters on the ground of which the declaration is made.

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s 187Proceedings under section 185 or 186

(1)

On the hearing of an application under section 185 or 186, the liquidator may himself give evidence or call witnesses.

Insolvency 148

(2)

Where under section 185 or 186 the Court makes a declaration, it may give such further directions as it thinks proper for giving effect to the declaration; and in particular, the Court may —

(a)

provide for the liability of any person under the declaration to be a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in a mortgage or charge on assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf; and

(b)

make such further order as may be necessary for enforcing any charge imposed under this subsection.

(3)

Where the Court makes a declaration under section 185 or 186 in relation to a person who is a creditor of the company, it may direct that the whole or any part of any debt owed by the company to that person and any interest thereon shall rank in priority after all other debts owed by the company and after any interest on those debts.

(4)

Sections 185 and 186 apply notwithstanding that the person concerned may be criminally liable in respect of matters on the ground of which the declaration under the section is to be made.

(5)

For the purposes of subsection (2), “assignee” —

(a)

includes a person to whom or in whose favour, by the directions of the person made liable, the debt, obligation, mortgage or charge was created, issued or transferred or the interest created; but

(b)

does not include an assignee for valuable consideration (not including consideration by way of marriage or the formation of a civil partnership) given in good faith and without notice of any of the matters on the ground of which the declaration is made.