Section 251 — Companies Act 1993: Restriction on rights of creditors to complete execution, distraint, or attachment

251 Restriction on rights of creditors to complete execution, distraint, or attachment (1) Subject to subsection (3) of this section, a creditor is not entitled to retain the benefit of any execution process, distress, or attachment over or against the property of a company unless the execution process, distress, or attachment is completed before— (a) The passing of a special resolution under section 241(2)(a) or a resolution under section 241(2)(d) appointing a liquidator of the company, or the date on which the creditor had notice of the calling of a meeting at which such a resolution was proposed, whichever occurs first; or (b) The passing of a resolution by the board of a company under section 241(2)(b) of this Act appointing a liquidator or the company, or the date on which the creditor had notice of the calling of a meeting at which such a resolution was proposed, whichever occurs first; or (c) The making of an application to the Court under section 241(2)(c) of this Act to appoint a liquidator of the company. (2) Notwithstanding subsection (1) of this section,— (a) A person who, in good faith, purchases property of a company from an officer charged with an execution process acquires a good title as against the liquidator of the company: (b) A person who, in good faith, purchases property of a company on which distress has been levied acquires a good title as against the liquidator of the company. (3) The Court may set aside the application of subsection (1) of this section to such an extent and on such terms and conditions as the Court thinks fit. (4) For the purposes of this section,— (a) An execution or distraint against personal property is completed by seizure and sale: (b) An attachment of a debt is completed by receipt of the debt: (c) An execution against land is completed by sale, and, in the case of an equitable interest, by the appointment of a receiver. (5) Nothing in this section limits or affects section 292 of this Act. Compare: 1955 No 63 s 314; 1980 No 43 s 29 Section 251(1)(a): amended, on 1 November 2007, by section 11 of the Companies Amendment Act 2006 (2006 No 56).