243 Discharge and variation of receivership orders

(1) The Court shall not discharge a receivership order unless it appears to the
Court that the purpose for which the order was made has been achieved

or substantially achieved or is incapable of achievement.

(2) The Court, on hearing an application for the discharge or variation of a
receivership order, may make any interim order or adjourn the hearing,
conditionally or unconditionally.

(3) Upon the Court discharging a receivership order in respect of a cell of a
protected cell company on the ground that the purpose for which the order
was made has been achieved or substantially achieved, the Court may
direct that any payment made by the receiver to any creditor of the
company in respect of that cell shall be deemed full satisfaction of the
liabilities of the company to that creditor in respect of that cell; and the
creditor‘s claims against the company in respect of that cell are thereby
deemed extinguished.

(4) Nothing in subsection (3) operates so as to affect or extinguish any right
or remedy of a creditor against any other person, including any surety of
the protected cell company.

(5) Subject to the provisions of —

(a) this Part and any rule of law as to preferential payments;

(b) any agreement between the protected cell company and any
creditor thereof as to the subordination of the debts due to that
creditor to the debts due to the company‘s other creditors; and


(c) any agreement between the protected cell company and any
creditor thereof as to set-off,

the company‘s cellular assets attributable to any cell of the company in
relation to which a receivership order has been made shall, in the winding
up of the business of or attributable to that cell pursuant to the provisions
of this Part, be realised and applied in satisfaction of the company‘s
liabilities attributable to that cell paripassu.

(6) Any surplus assets shall thereafter be distributed (unless the
memorandum or articles provide otherwise) —

(a) among the holders of the cell shares or the persons otherwise
entitled to the surplus assets; or

(b) where there are no cell shares and no such persons, among the
holders of the core shares,

in each case according to their respective rights and interests in or against
the company.

(7) The Court may, upon discharging a receivership order in respect of a cell
of a protected cell company, direct that the cell shall be dissolved on such
date as the Court may specify.

(8) Immediately upon the dissolution of a cell of a protected cell company,
the company may not undertake business or incur liabilities in respect of
that cell.

(9) Where a receivership order is discharged or varied under this section the
receiver shall —

(a) within 7 days after the day of the order effecting the discharge or
variation, send a copy of the order to the Registrar; and

(b) within such time as the Court may direct, send a copy thereof to
such other persons as the Court may direct.