The amendment introduces a slight change to subsection (6). Amendment No. 406 makes the same change to clause 263, which applies to Scotland. Clause 255 sets out provisions on exclusions that the court may make in an interim receiving order to allow dealing with property to which the interim receiving order applies. Clause 263 does the same in respect of Scotland. Property that may be subject to an interim receiving order or an administration order may be recoverable property or associated property. Exclusions may be made under clauses 255 and 263 in respect of both recoverable and associated property.

Subsection (6) currently sets out a proviso to the power to make exclusions, which is that the court must exercise the power with a view to ensuring that, as far as practicable, the rights of the director or Scottish Minister to recover property are not unduly prejudiced. As currently defined, however, the proviso applies in respect of recoverable property only, not associated property.

It is less likely that an exclusion in relation to associated property would prejudice the right to recover than an exclusion in relation to recoverable property, but it could be the case. It would therefore be reasonable to require the court to consider whether any exclusion applying to associated property would unduly prejudice the right of enforcement in the same way that, as the Bill is currently drafted, it would have to consider that in respect of recoverable property.

The amendment will mirror the provisions under clauses 257(2) and 264(2), which provide that associated property may be excluded from the terms of an interim receiving order or an administration order entirely, if the court thinks that the satisfaction of any

right to recover the property will not be unduly prejudiced. It will not prevent the court from making exclusions in respect of associated property. It will ensure that, when taking decisions, the court considers all the relevant factors.