299. Property and proceedings Flashcards
1
Q
- Property and proceedings
A
General overview
[299.01] Basically, s 299 has two parts: (i) it renders all attachments, sequestration, distress, etc. void against the company; and (ii) it provides a moratorium against all actions and proceedings against the company except with leave of the court. The former encapsulates the pari passu principle that all unsecured creditors stand on equal footing in respect of the payment of the debts owing to them, and no creditor shall steal a march on the others by virtue of any attachment or execution process. The latter prevents the company being harassed by legal actions and proceedings, and the liquidator from wasting the company’s assets in defending such actions, subject to s 272(2)(a).
