Section 1112G | Meaning of “going concern” ^F1

(1)For the purposes of section 1112F, a company is a going concern if—^F1

(a)its latest published accounts were prepared on a going concern basis, and^F1

(b)nothing in those accounts indicates that they were prepared on that basis only because of an entitlement or expected entitlement to a credit or relief under this Part.^F1

(2)But a company is not a going concern if it is in administration or liquidation.^F1

(3)For the purposes of this section, a company is in administration if—^F1

(a)it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or^F1

(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.^F1

(4)For the purposes of this section, a company is in liquidation if—^F1

(a)it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or^F1

(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.^F1

(5)If—^F1

(a)a company transfers its trade and research and development to another company that is a member of the same group, and^F1

(b)only by reason of that transfer, the company’s accounts for the period of account in which the transfer took place are not prepared on a going concern basis,^F1

the accounts are to be treated for the purposes of this section as if they were prepared on a going concern basis.

(6)Section 436(2) of the Companies Act 2006 (meaning of “publication” of documents) has effect for the purposes of this section.^F1