Section 25: Receivership order in relation to cells

25. Receivership order in relation to cells (1) Subject to this section, where, in relation to a protected cell company, the Court is satisfied that— (a) the cellular assets attributable to a particular cell, when account is taken of the company’s non-cellular assets, unless there are no creditors in respect of that cell entitled to have recourse to the company’s non-cellular assets, are, or are likely to be, insufficient to discharge the claims of creditors in respect of that cell; (b) the making of an administration order in respect of that cell would not be appropriate; and P42 – 15 [Issue 1] Protected Cell Companies Act (c) the making of a receivership order would achieve the purposes set out in subsection (2), the Court may make a receivership order in respect of that cell or one or more cells. (2) A receivership order shall direct that the business and cellular assets of, or attributable to, a cell, shall be managed by a receiver appointed by the Court for the purposes of— (a) the orderly winding up of the business of or attributable to the cell; and (b) the distribution of the cellular assets attributable to the cell to those entitled to have recourse thereto. (3) A receivership order— (a) may not be made if— (i) a liquidator has been appointed to act in respect of the protected cell company; or (ii) the protected cell company has passed a resolution for voluntary winding up; (b) may be made in respect of a cell subject to an administration order under section 20; (c) shall cease to be of effect upon the appointment of a liquidator to act in respect of the protected cell company, but without prejudice to prior acts. (4) (a) No resolution for the voluntary winding up of a protected cell company which, or any cell of which, is subject to a receivership order shall be effective without leave of the Court. (b) The Court, on hearing an application for leave, may make an interim order or adjourn the hearing.