Section A29: Restrictions on disposal of property

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part A1: Moratorium — Chapter 4: Effects of moratorium

During a moratorium, the company may dispose of its property only if authorised by subsection (2) or (5).

In the case of property that is not subject to a security interest, the company may dispose of the property if—

the disposal is made in the ordinary way of the company's business,
the monitor consents, or
the disposal is in pursuance of a court order.

The monitor may give consent under subsection (2)(b) only if the monitor thinks that it will support the rescue of the company as a going concern.

In deciding whether to give consent under subsection (2)(b), the monitor is entitled to rely on information provided by the company unless the monitor has reason to doubt its accuracy.

In the case of property that is subject to a security interest, the company may dispose of the property if the disposal is in accordance with—

section A31(1), or
the terms of the security.

If the company disposes of its property during the moratorium otherwise than as authorised by this section—

the company commits an offence, and
any officer of the company who without reasonable excuse authorised or permitted the disposal commits an offence.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.