Section 411. Effect of judicial management order

(1) Upon the making of a judicial management order—

(a) any receiver or receiver and manager shall vacate office; and

(b) any application for the winding up of the company shall be dismissed.

(2) Where any receiver or receiver and manager has vacated office under paragraph (1)(a)—

(a) the remuneration and expenses properly incurred by the receiver or receiver and manager; and

(b) any indemnity to which the receiver or receiver and manager is entitled out of the assets of the company,

shall be charged on and, subject to subsection (4), paid out of any property which was in his custody or under his control at the time in priority to any security held by the person by or on whose behalf he was appointed.

(3) Neither a receiver nor a receiver and manager of a company who vacates office under paragraph (1)(a) shall be required to take steps to comply with any duty imposed on him by section 391 on or after so vacating office.

(4) During the period for which a judicial management order is in force—

(a) no resolution shall be passed or order made for the winding up of the company;

(b) no receiver or receiver and manager of the kind referred to in section 374 shall be appointed;

(c) no other proceedings and no execution or other legal process shall be commenced or continued and no distress may be levied against the company or its property except with the consent of the judicial manager or with the leave of the Court and, if the Court grants leave, subject to such terms as the Court may impose;

(d) no steps shall be taken to enforce security over the company’s property or to repossess any goods in the company’s possession under any hire purchase agreement, chattels leasing agreement or retention of title agreement, except with consent of the judicial manager or leave of the Court and subject to such terms as the Court may impose; and

(e) no steps shall be taken to transfer any share of the company or to alter the status of any member of the company except with the leave of the Court and, if the Court grants leave, subject to such terms as the Court may impose.