The period to which these provisions apply is as follows:
- For connected parties, two years up to the petition for the winding up, whether or not the company was insolvent when the charge was created.
- For non-connected parties, 12 months up to the petition for winding up, if the company is unable to pay its debts when the charge was created, or if it became unable to pay its debts because of the transaction under which the charge was created.
Whether a person is connected or not is relevant when the charge is created, not when the company is wound up.