SCHEDULES

C2C1C3C4F1SCHEDULE A1 Moratorium where directors propose voluntary arrangement

Annotations:
Amendments (Textual)
F1

Sch. A1 inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 paras. 5, 45(1)-(3)(5) and 1.1.2003 in so far as not already in force) by 2000 c. 39, s. 1, Sch. 1 para. 4; S.I. 2001/1751, art. 2; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

Modifications etc. (not altering text)
C2

Sch. A1 applied (with modifications) (E.W.) (1.1.2003) by The Insolvent Partnerships Order 1994 (S.I. 1994/2421), art. 4(1), Sch. 1 (as amended (1.1.2003) by S.I. 2002/2708, arts. 4-6 (with transitional provisions in art. 11); (1.7.2005) by S.I. 2005/1516, art. 6); (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 2 para. 5 (with reg. 4))

Part V Consideration and implementation of voluntary arrangement

Approval of voluntary arrangement

31

F91

This paragraph applies where under paragraph 29—

a

a meeting of the company is summoned to consider the proposed voluntary arrangement, and

b

the nominee seeks a decision from the company's creditors as to whether they approve the proposed voluntary arrangement.

1A

The company and its creditors may approve the proposed voluntary arrangement with or without modifications.

2

The modifications may include one conferring the functions proposed to be conferred on the nominee on another person qualified to act as an insolvency practitioner F8... in relation to the voluntary arrangement.

3

The modifications shall not include one by virtue of which the proposal ceases to be a proposal such as is mentioned in section 1.

4

F10Neither the company nor its creditors may 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.

5

Subject to sub-paragraph (6), F11neither the company nor its creditors may approve any proposal or modification under which—

a

any preferential debt of the company is to be paid otherwise than in priority to such of its debts as are not preferential debts, F2...

F3aa

any ordinary preferential debt of the company is to be paid otherwise than in priority to any secondary preferential debts that it may have,

b

a preferential creditor of the company is to be paid an amount in respect of F5an ordinary preferential debt that bears to that debt a smaller proportion than is borne to F6another ordinary preferential debt by the amount that is to be paid in respect of that other debt F4, F17...

c

a preferential creditor of the company is to be paid an amount in respect of a secondary preferential debt that bears to that debt a smaller proportion than is borne to another secondary preferential debt by the amount that is to be paid in respect of that other debt.F16or

d

if the company is a relevant financial institution (see section 387A), any non-preferential debt is to be paid otherwise than in accordance with the rules in section 176AZA(2) or (3).

6

F12Such a proposal or modification may be approved with the concurrence of the F18... creditor concerned.

7

The directors of the company may, before the beginning of the F13relevant period, give notice to the nominee of any modifications of the proposal for which the directors intend to seek the approval of F14the company and its creditors.

F157A

The “relevant period” is—

a

in relation to the company, the period of seven days ending with the company meeting summoned under paragraph 29 being held;

b

in relation to the company's creditors, the period of 14 days ending with the end of the period mentioned in paragraph 8(3).

7B

Where under sub-paragraph (7) the nominee is given notice of proposed modifications, the nominee must seek a decision from the company's creditors (using a qualifying decision procedure) as to whether the proposed voluntary arrangement should be approved with those modifications.

8

References in this paragraph to preferential debts F7, ordinary preferential debts, secondary preferential debts and preferential creditors are to be read in accordance with section 386 in Part XII of this Act.