96. Distribution

Past version: effective from 14/06/2015 - 13/06/2015
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(1) The administrator of a Company may make a distribution to a creditor of the Company. Schedule 5 (Proofs and Distribution) shall apply to distributions made or proposed to be made by the administrator of a Company to any class of creditors other than secured creditors.
(2) Section 227 (Preferential Debts) shall apply in relation to a distribution under this Section as it applies in relation to a winding-up with references in that Section to "expenses" being instead to expenses properly incurred in an administration under this Part 1 (Administration).
(3) A payment may not be made by way of distribution under this Section to a creditor of the Company who is neither secured nor preferential unless the Court gives permission.
(4) The administrator of a Company may make a payment otherwise than in accordance with subsections (1) to (3) or paragraph (13) of Schedule 2 (Powers of the Administrator) if he thinks it likely to assist achievement of the purpose of administration.