In force2020 Revised Edition

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

108. Consideration of proposals by creditors’ meeting

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(1)

A meeting of creditors, summoned under section 107(1), must decide whether to approve the judicial manager’s proposals.

(2)

The meeting must, subject to subsection (3), be conducted in accordance with the regulations.

(3)

At the meeting, a majority in number and value of the creditors (present and voting either in person or by proxy), whose claims have been accepted by the judicial manager, may approve the proposals with modifications, but must not do so unless the judicial manager consents to each modification.

(4)

The judicial manager must —

(a)

report the result of the meeting to the Court; and

(b)

give notice of that result to the Registrar of Companies and to such other persons or bodies as the Court may approve.

(5)

If a report is given to the Court under subsection (4) that the meeting has declined to approve the judicial manager’s proposals (with or without modifications), the Court may —

(a)

by order discharge the company from judicial management, and make such consequential provision as the Court thinks fit;

(b)

adjourn the hearing conditionally or unconditionally; or

(c)

make an interim order or any other order that the Court thinks fit.

(6)

A copy of every order of the Court made under subsection (5) must be published in an English local daily newspaper.

(7)

Where the company is discharged under subsection (5) from judicial management, the judicial manager must immediately lodge with the Official Receiver and the Registrar of Companies a copy of the order effecting the discharge.

(8)

Any judicial manager who, without reasonable excuse, fails to comply with subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and also to a default penalty.