521. Effect of moratorium.

521.     Effect of moratorium.

Where company directors intend to make a proposal for a voluntary arrangement1, they may take steps to obtain a moratorium for the company2, and during the period for which the moratorium is in force3 no steps may be taken to enforce any security over company property4 and no proceedings, execution or other legal process may be commenced or continued against the company or its property except with the permission of the court and subject to such terms as the court may impose5.

A company in respect of