Modifications etc. (not altering text)
C1Pts. VIII-X (arts. 209-345) modified by Foyle Fisheries Act (Northern Ireland) 1952 (c. 5), s. 52K(2) (as inserted (prosp.) by Foyle and Carlingford Fisheries (Northern Ireland) Order 2007 (S.I. 2007/915 (N.I. 9)), arts. 1(3), 3(1) (with art. 32))
232.—(1) A creditors' meeting summoned under Article 231 shall decide whether to approve the proposed voluntary arrangement.
(2) The meeting may approve the proposed voluntary arrangement with modifications, but shall not do so unless the debtor consents to each modification.
(3) Subject to paragraph (4), the modifications subject to which the proposed voluntary arrangement may be approved may include one conferring the functions proposed to be conferred on the nominee on another person qualified to act as an insolvency practitioner[F1 or authorised to act as nominee, in relation to the voluntary arrangement].
(4) The modifications mentioned in paragraph (3) shall not include any modification by virtue of which the proposal ceases to be a proposal[F1 under this Part].
(5) The meeting shall not approve any proposal or modification which affects the right of a secured creditor of the debtor to enforce his security, except with the concurrence of the creditor concerned.
(6) Subject to paragraph (7), the meeting shall not approve any proposal or modification under which—
(a)any preferential debt of the debtor is to be paid otherwise than in priority to such of his debts as are not preferential debts, F2...
[F3(aa)any ordinary preferential debt of the debtor is to be paid otherwise than in priority to any secondary preferential debts that the debtor may have,]
(b)a preferential creditor of the debtor is to be paid an amount in respect of [F4an ordinary preferential debt] that bears to that debt a smaller proportion than is borne to [F5another ordinary] preferential debt by the amount that is to be paid in respect of that other debt, [F6F7...
(c)a preferential creditor of the debtor 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,] [F8or
(d)if the debtor is a relevant financial institution (see Article 347A), any non-preferential debt is to be paid otherwise than in accordance with the rules in Article 300(3A) (reading references to the bankrupt as references to the debtor).]
(7) The meeting may approve a proposal or modification such as is mentioned in paragraph (6) with the concurrence of the F9... creditor concerned.
(8) Subject to paragraphs (2) to (7), the meeting shall be conducted in accordance with the rules.
(9) In this Article “preferential debt” [F10, “ordinary preferential debt” and “secondary preferential debt” each has] the meaning given by Article 346; and “preferential creditor” is to be construed accordingly.
F2Word in art. 232(6)(a) omitted (1.1.2015) by virtue of The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(2)(a) (with art. 3)
F3Art. 232(6)(aa) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(2)(b) (with art. 3)
F4Words in art. 232(6)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(2)(c)(i) (with art. 3)
F5Words in art. 232(6)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(2)(c)(ii) (with art. 3)
F6Art. 232(6)(c) and word inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(2)(d) (with art. 3)
F7Word in art. 232(6)(b) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 25(2)(a) (with art. 3)
F8Art. 232(6)(d) and word inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 25(2)(b) (with art. 3)
F9Word in art. 232(7) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 25(3) (with art. 3)
F10Words in art. 232(9) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 18(3) (with art. 3)
Modifications etc. (not altering text)
C2Art. 232 excluded (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Master's Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 97(2)(c)