Insolvency Act · 2022 Revised Edition · Part 2
8. Proposal for voluntary arrangement
Official textFrom Attorney General's Chambers, unchanged
A proposal to the company and to its creditors may be made, by any of the persons mentioned in subsection (2), for a voluntary arrangement.
company
“company” means a company incorporated or registered under the Companies Act;
The persons referred to in subsection (1) are —
the directors of a company (other than one which is in judicial management or being wound up);
where the company is in judicial management, the judicial manager;
where the company is being wound up, the liquidator.
A voluntary arrangement may include —
voluntary arrangement
“voluntary arrangement” means the voluntary arrangement described in section 8.
a composition in satisfaction of its debts;
restructuring of debts through restatements of assets and liabilities and agreement with creditors on maintaining payments;
reorganising the company by restructuring the ownership and management of the company to lead to better decision-making and execution; or
any other acts as may be necessary for the rehabilitation or rescue of the company.
A proposal under subsection (1) shall provide for some person
(the nominee) to act in relation to the voluntary arrangement either as trustee or otherwise for the purpose of supervising its implementation; and the nominee must be a person who is qualified to act as an insolvency practitioner or authorised to act as nominee, in relation to the voluntary arrangement.
insolvency
“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
Insolvency
Creditors who are entitled to vote on the proposal are those whose rights are affected by the proposal and the proposal shall —
designate any class of claims or interests;
specify any class of claims or interests that is not impaired under the proposal or the order;
specify the treatment of any class of claims or interests that is impaired under the proposal or the order;
provide the same treatment for each claim or interest of a particular class, unless the holder of a particular class of claim or interest agrees to a less favourable treatment of such particular claim or interest.
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
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