In force2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 7 · Judicial Management

107. Statement of proposals

(1)

Where a company enters judicial management, the judicial manager must, within 90 days (or such longer period as may be allowed under subsection (3)) after the company’s entry into judicial management —

(a)

send to the Registrar of Companies and to every creditor (so far as the judicial manager is aware of the creditor’s address) a statement of the judicial manager’s proposals for achieving one or more of the purposes mentioned in section 89(1); and

(b)

lay a copy of the statement before a meeting of the company’s creditors summoned for the purpose on not less than 14 days’ notice.

(2)

The judicial manager must also, within 90 days (or such longer period as may be allowed under subsection (3)) after the company’s entry into judicial management, either —

(a)

send a copy of the statement to every member of the company (so far as the judicial manager is aware of the member’s address); or

(b)

publish a notice in an English local daily newspaper stating an address to which members of the company should write for copies of the statement to be sent to them free of charge.

(3)

A judicial manager may obtain an extension of the period specified in subsection (1) or (2) —

(a)

by making an application at any time to the Court; or

(b)

subject to subsection (4), by obtaining the approval of a majority in number and value of the creditors of the company (voting either in person or by proxy) —

(i)

in writing; or

(ii)

at a creditors’ meeting.

(4)

An extension of time may be obtained under subsection (3)(b) —

(a)

only for a period not exceeding 60 days;

(b)

only once;

(c)

only if the period specified in subsection (1) or (2) has not been extended by the Court; and