Section 222

If a payment is made in contravention of section 217 (payment by company)— it is held by the recipient on trust for the company making the payment, and any director who authorised the payment is jointly and severally liable to indemnify the company that made the payment for any loss resulting from it. If a payment is made in contravention of section 218 (payment in connection with transfer of undertaking etc), it is held by the recipient on trust for the company whose undertaking or property is or is proposed to be transferred. If a payment is made in contravention of section 219 (payment in connection with share transfer)— it is held by the recipient on trust for persons who have sold their shares as a result of the offer made, and the expenses incurred by the recipient in distributing that sum amongst those persons shall be borne by him and not retained out of that sum. If a payment is in contravention of section 217 and section 218, subsection (2) of this section applies rather than subsection (1). If a payment is in contravention of section 217 and section 219, subsection (3) of this section applies rather than subsection (1), unless the court directs otherwise.

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Source: legislation.gov.uk · retrieved 2026-09-04