S.L. 386.22 Art. 11Position of creditors.

(1) A creditor of a cell company shall not have any rights other than the rights referred to in this regulation and in regulations 12 and 13.

(2) In every transaction entered into by a cell company, there shall be implied the following terms, namely that:

(a) no party shall seek, whether in any proceedings or by any other means whatsoever, to make or attempt to use any cellular assets attributable to any cell of the company to satisfy a liability not attributable to that cell; and

(b) if any party succeeds by any means whatsoever in using any cellular assets attributable to any cell of the cell company to satisfy a liability not attributable to that cell, that party shall be liable to the cell company to pay a sum equal to the value of the benefit thereby obtained by him.

(3) Any asset or sum recovered by a cell company under the implied term set out in sub-regulation (2)(b) or by any other means whatsoever in the events referred to in that sub-regulation shall, after the deduction or payment of any costs of recovery, be applied by the cell company so as to compensate the cell affected.

(4) In the event of an executive warrant being issued or enforced on any cellular assets attributable to a cell of a cell company in respect of a liability not attributable to that cell, and in so far as such assets or compensation in respect thereof cannot otherwise be restored to the cell affected, the cell company shall:

(a) cause or procure its auditor, acting as expert and not as arbitrator, to certify the value of the assets lost by the cell affected; and

(b) transfer or pay to the cell affected, from the cellular or non-cellular assets to which the liability was attributable, assets or sums sufficient to restore to the cell affected the value of the assets lost.

(5) Where under sub-regulation (4)(b) a cell company is obliged to make a transfer or payment from cellular assets attributable to a cell of the company, and those assets are insufficient, the company shall so far as possible make up for the deficiency from its non-cellular assets.

(6) This regulation shall apply to cellular and non-cellular assets of a cell company wherever such assets are situated.