COMPANIES ACT, 1925

HOT

270.—(1) In the winding up of a company registered in Scotland,
the following provisions shall have effect :—
(a)

The winding up shall, as at the date of the commencement
thereof, be equivalent to an arrestment in execution and
decree of furthcoming, and to an executed or completed
poinding, and no arrestment or poinding of the funds or
effects of the company executed on or after the sixtieth
day prior to that date shall be effectual, and those funds or
effects or the proceeds of those effects if sold shall be made
furthcoming to the liquidator:

Provided that any arrester or poinder before that date,
who is thus deprived of the benefit of his diligence shall have
preference out of those funds or effects for the expense
bona fide incurred by him in such diligence:
'b)

The winding up shall, as at the date aforesaid, be equivalent
to a decree of adjudication of the heritable estates of the
company for payment of the whole debts of the company,
principal and interest, accumulated at the said date, subject
to such preferable heritable rights and securities as existed
at the said date and are valid and unchallengeable, and the
right to poind the ground hereinafter provided:

C

The provisions of sections one hundred and eight to one
hundred and thirteen and of section one hundred and six-
teen of the Bankruptcy (Scotland) Act, 1913, shall, so far
as is consistent with this Act, apply to the realisation of
heritable estates affected by such heritable rights and
securities as aforesaid; and for the purposes of this Act the
words ‘“‘sequestration” and ‘‘trustee’’ occurring in those
sections shall mean respectively “winding up’ and “‘liqui-
dator,” and the expression ‘“the Lord Ordinary or the
court” shall mean ‘the court” as defined by this Act with
respect to Scotland:
(d)

No poinding of the ground which has not been carried into
execution by sale of the effects sixty days before the date
aforesaid shall, except to the extent hereinafter provided,
be available in any question with the liquidator:

Provided that no creditor who holds a security over
the heritable estate preferable to the right of the liquidator
shall be prevented from executing a poinding of the ground
after the date aforesaid, but that poinding shall in competi-
tion with the liquidator be available only for the interest on
the debt for the current half-yearly term, and for the
arrears of interest for one year immediately before the
commencement of that term.

Effect of dili-
gence within 6o
days of winding
1p in case of
Scottish com-
pany, and in case
Of effects in Scot-
and of English
company.

(2) The provisions of this section shall, so far as relates to any
estate or effects of the company situate in Scotland, apply in the case
of a company registered in England as it applies in the case of a
company registered in Scotland,