Insolvency Act · 2022 Revised Edition · Part 2
12. Decisions of meetings
Official textFrom Attorney General's Chambers, unchanged
The meetings summoned under section 11 shall decide whether to approve the proposed voluntary arrangement with or without modifications.
voluntary arrangement
“voluntary arrangement” means the voluntary arrangement described in section 8.
The modifications —
may include the conferment of the functions proposed to be conferred on the nominee on another person qualified to act as an insolvency practitioner or authorised to act as nominee, in relation to the voluntary arrangement;
shall not include any modification by virtue of which the proposal ceases to be a proposal such as is mentioned in section 8.
A meeting so summoned shall not approve any proposal or modification which affects the right of a secured creditor of the company to enforce his security, except with the concurrence of the creditor concerned.
secured creditor
“secured creditor”, in relation to a company, means a creditor of the company who holds in respect of his debt a security over property of the company, and “unsecured creditor” is to be read accordingly;
Subject to subsection (5), a meeting so summoned shall not approve any proposal or modification under which —
any preferential debt of the company is to be paid otherwise than in priority to such of its debts as are not preferential debts; or
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a preferential creditor of the company is to be paid an amount in respect of a preferential debt that bears to that debt a smaller proportion than is borne to another preferential debt by the amount that is to be paid in respect of that other debt.
The meeting may approve such a proposal or modification with the concurrence of the preferential creditor concerned.
Subject to subsections (4) and (5), each of the meetings shall be conducted in accordance with the rules.
After the conclusion of either meeting in accordance with the rules, the chairman of the meeting shall report the result of the meeting to the
Court, and, immediately after reporting to the Court, shall give notice of the result of the meeting to such persons as may be prescribed.
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
References in this section to preferential debts and preferential creditors are to be read in accordance with section 147.
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
secured creditor
Defined · s 3“secured creditor”, in relation to a company, means a creditor of the company who holds in respect of his debt a security over property of the company, and “unsecured creditor” is to be read accordingly;
security
Defined · s 3“security” means any mortgage, charge, lien or other security interests;
voluntary arrangement
Defined · s 3“voluntary arrangement” means the voluntary arrangement described in section 8.
Part 3
Part
Judicial Management
Part
Winding Up of Companies Registered Under Companies Act
Chapter I
Chapter II
Chapter III
Chapter IV
Chapter V
Chapter VI
Chapter VII
Chapter VIII
Chapter IX
Chapter X
Part