(1) Debenture holders are entitled to realise any security interest vested in them or in any other person for their benefit, if—
(a) the company fails, within one month after it becomes due, to pay—
(i) any installment of interest,
(ii) the whole or part of the principal, or
(iii) any premium,
owing under the debentures or the trust deed covering the debentures;
(b) the company fails to fulfil any of the obligations imposed on it by the debentures or the trust deed;
(c) any circumstances occur that by the terms of the debentures or trust deed entitle the holders of the debentures to realise their security interest; or
(d) the company goes into liquidation.
(2) Debenture holders whose debentures are secured by a general floating charge vested in themselves or the trustee of the covering trust deed or any other person are additionally entitled to realise their security interest, if—
(a) any creditor of the company issues a process of execution against any of its assets or commences proceedings for winding-up of the company by order of any court of competent jurisdiction;
(b) the company ceases to pay its debts as they fall due;
(c) the company ceases to carry on business;
(d) the company incurs, after the issue of debentures of the class concerned, losses or diminution in the value of its assets that in the aggregate amount to more than 1/2 of the total amount owing in respect of—
(i) debentures of the class held by the debenture holders who seek to enforce their security interest, and
(ii) debentures whose holders rank before them for payment of principal or interest; or
(e) any circumstances occur that entitle debenture holders who rank for payment of principal or interest in priority to the debentures secured by the general floating charge to realise their security interest.
(3) At any time after a class of debenture holders become entitled to realise their security interest, a receiver of any assets subject to such security interest or in favour of the class of debenture holders or the trustee of the covering trust deed or any other person may be appointed—
(a) by the trustee;
(b) by the holders of debentures in respect of which there is owing more than 1/2 of the total amount owing in respect of all the debentures of the same class; or
(c) by the court on the application of any trustee or debenture holder of the class concerned.
(4) A receiver appointed under subsection (3) has, subject to any order made by the court, power—
(a) to take possession of the assets that are subject to the security interest and to sell those assets; and
(b) if the security interest extends to that property—
(i) to collect debts owed to the company,
(ii) to enforce claims vested in the company,
(iii) to compromise, settle and enter into arrangements in respect of claims by or against the company,
(iv) to carry on the company's business with a view to selling it on the most favourable terms,
(v) to grant or accept leases of land and licences in respect of patents, designs, copyright, or trade, service or collective marks, and
(vi) to recover capital unpaid on the company's issued shares.
(5) The remedies given by this section are in addition to, and not in substitution for, any other powers and remedies conferred on the trustee under the trust deed or on the debenture holders by the debentures or the trust deed; and any power or remedy that is expressed in any instrument to be exercisable if the debenture holders become entitled to realise their security interest is exercisable on the occurrence of any of the events specified in subsection (1), or, in the case of a general floating charge, in subsections (1) and (2); but a manager of the business or of any of the assets of a company may not be appointed for the benefit of debenture holders unless a receiver has also been appointed and has not ceased to act.
(6) This section applies to debentures issued before as well as after the commencement date.
(7) No provision in any instrument is valid that purports to exclude or restrict the remedies given by this section.
Division C: Receivers and Receiver-Managers