Insolvency Practitioners Regulation Bill

  • enacted

Subpart 2—Restrictions on insolvency practitioners

77 Meaning of arm’s-length terms

A purchase or transaction described in section 78 or 79 is on arm’s-length terms if it is on terms that—

(a)

would be reasonable in the circumstances if the parties were connected or related only by the transaction in question, each acting independently, and each acting in its own best interests; or

(b)

are less favourable than the terms referred to in paragraph (a) for—

(i)

a person described in section 78(1), in the case of section 78; or

(ii)

a person defined as P, in the case of section 79.