Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 14 · Voluntary Arrangements
282. Decision of creditors’ meeting
Feedback & supportA creditors’ meeting summoned under section 281 may, if the meeting thinks fit, by special resolution resolve to approve the proposed voluntary arrangement, whether with or without modification.
special resolution
“special resolution” means a special resolution mentioned in section 184 of the Companies Act 1967;
The creditors’ meeting must not approve the proposed voluntary arrangement with any modification unless the debtor has consented to such modification.
debtor
“debtor” means the individual to whom a debt repayment scheme applies under this Part;
For the purpose of this section, a modification subject to which a proposed voluntary arrangement may be approved by a creditors’ meeting may confer the functions proposed to be conferred on the nominee on another person qualified to act as a nominee.
nominee
“nominee” means the person appointed by virtue of a debtor’s proposal for a voluntary arrangement under Part 14 to act as trustee or otherwise to supervise the implementation of the voluntary arrangement and includes —(a)any replacement of such person pursuant to a direction under section 280(3)(a) or an order under section 286(5); and(b)any person upon whom the functions of the nominee have been conferred by a creditors’ meeting pursuant to section 282(3);
No modification under subsection (3) may alter the proposal to such an extent that it ceases to be a proposal for a voluntary arrangement by the debtor.
The creditors’ meeting must not approve any proposal or any modification to the proposal which affects the right of a secured creditor of the debtor to enforce the secured creditor’s security, except with the concurrence of the secured creditor.
secured creditor
“secured creditor”, in relation to a debtor, means a person holding a mortgage, pledge, charge, lien or other security on or against the property of the debtor or any part of such property as security for a debt due to the person from the debtor;
The creditors’ meeting must not, without the concurrence of the preferential creditor in question, approve any proposal or any modification of the proposal under which —
creditor
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part 14, means a creditor to whom the debtor owes a debt provable in bankruptcy;
any debt of the debtor, not being a preferential debt, is to be paid in priority to any preferential debt of the debtor; or
the priority of payment of any preferential debt of the debtor, in relation to any other preferential debt of the debtor, is not in accordance with section 352.
Every creditors’ meeting must be conducted in accordance with the prescribed regulations.
Any debtor who makes any false representation or commits any other fraud for the purpose of obtaining the approval of the debtor’s creditors to a proposal for a voluntary arrangement shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.