Small Business, Enterprise and Employment Act 2015

Administration

10 (1) Schedule B1 (administration) is amended as follows.

(2) In paragraph 49(4)(b), after “company” insert “, other than an opted-out creditor,”.

(3) Omit paragraph 50 and the heading before it.

(4) For the heading before paragraph 51 substitute “Consideration of administrator’s proposals by creditors”.

(5) In paragraph 51, for sub-paragraphs (1) to (3) substitute—

“(1) The administrator must seek a decision from the company’s creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1).

(2) The initial decision date for that decision must be within the period of 10 weeks beginning with the day on which the company enters administration.

(3) The “initial decision date” for that decision—

(a) if the decision is initially sought using the deemed consent procedure, is the date on which a decision will be made if the creditors by that procedure approve the proposals, and

(b) if the decision is initially sought using a qualifying decision procedure, is the date on or before which a decision will be made if it is made by that qualifying decision procedure (assuming that date does not change after the procedure is instigated).”

(6) In paragraph 52(2), for the words from “summon” to “requested” substitute “seek a decision from the company’s creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1) if requested to do so”.

(7) For paragraph 52(3) substitute—

“(3) Where a decision is sought by virtue of sub-paragraph (2) the initial decision date (as defined in paragraph 51(3)) must be within the prescribed period.”

(8) For the heading before paragraph 53 substitute “Creditors’ decision”.

(9) In paragraph 53, for sub-paragraph (1) substitute—

“(1) The company’s creditors may approve the administrator’s proposals—

(a) without modification, or

(b) with modification to which the administrator consents.”

(10) In paragraph 53(2)—

(a) for “After the conclusion of an initial creditors’ meeting the” substitute “The”;

(b) after “taken” insert “by the company’s creditors”.

(11) In paragraph 54(1)(a) for “at an initial creditors’ meeting” substitute “by the company’s creditors”.

(12) Omit paragraph 54(2)(a).

(13) In paragraph 54(2)(b)—

(a) omit “with the notice of the meeting sent”;

(b) after “creditor” insert “who is not an opted-out creditor”.

(14) For paragraph 54(2)(d) substitute—

“(d) seek a decision from the company’s creditors as to whether they approve the proposed revision.”

(15) For paragraph 54(5) substitute—

“(5) The company’s creditors may approve the proposed revision—

(a) without modification, or

(b) with modification to which the administrator consents.”

(16) In paragraph 54(6)—

(a) for “After the conclusion of a creditors’ meeting the” substitute “The”;

(b) after “taken” insert “by the company’s creditors”.

(17) For paragraph 55(1) substitute—

“(1) This paragraph applies where an administrator—

(a) reports to the court under paragraph 53 that a company’s creditors have failed to approve the administrator’s proposals, or

(b) reports to the court under paragraph 54 that a company’s creditors have failed to approve a revision of the administrator’s proposals.”

(18) In the heading before paragraph 56, for “meetings” substitute “decisions”.

(19) In paragraph 56(1), for “summon a creditors’ meeting”—

(a) in the first place, substitute “seek a decision from the company’s creditors on a matter”;

(b) in the second place, substitute “do so”.

(20) In paragraph 56(2), for “summon a creditors’ meeting” substitute “seek a decision from the company’s creditors on a matter”.

(21) In paragraph 57(1), for “A creditors’ meeting may” substitute “The company’s creditors may, in accordance with the rules,”.

(22) Omit paragraph 58 and the heading before it.

(23) In paragraph 62, for the words from “may” to the end substitute “may—

(a) call a meeting of members of the company;

(b) seek a decision on any matter from the company’s creditors.”

(24) For paragraph 74(4)(c) substitute—

“(c) require a decision of the company’s creditors to be sought on a matter;”.

(25) For paragraph 78(1)(b) substitute—

“(b) if the company has unsecured debts, the unsecured creditors of the company.”

(26) For paragraph 78(2)(b)(ii) substitute—

“(ii) the preferential creditors of the company.”

(27) After paragraph 78(2) insert—

“(2A) Whether the company’s unsecured creditors or preferential creditors consent is to be determined by the administrator seeking a decision from those creditors as to whether they consent.”

(28) Omit paragraph 78(3).

(29) In paragraph 79(2)(c) for “a creditors’ meeting requires him to” substitute “the company’s creditors decide that he must”.

(30) In paragraph 80(4) after “company” insert “, other than an opted-out creditor,”.

(31) In paragraph 83(5)(b) after “creditor” insert “, other than an opted-out creditor,”.

(32) In paragraph 83(8)(d) omit “98,”.

(33) In paragraph 84(5)(b) after “creditor” insert “, other than an opted-out creditor,”.

(34) In the heading before paragraph 97, for “meeting” substitute “decision”.

(35) For paragraph 97(2) and (3) substitute—

“(2) The administrator may be replaced by a decision of the creditors made by a qualifying decision procedure.

(3) The decision has effect only if, before the decision is made, the new administrator has consented to act in writing.”

(36) In paragraph 98(2)(b), for the second “resolution” substitute “decision”.

(37) For paragraph 98(3)(b)(ii) substitute—

“(ii) the preferential creditors of the company.”

(38) After paragraph 98(3) insert—

“(3A) In a case where the administrator is removed from office, a decision of the creditors for the purposes of sub-paragraph (2)(b), or of the preferential creditors for the purposes of sub-paragraph (2)(ba), must be made by a qualifying decision procedure.”

(39) In paragraph 108(1) omit “, 50(1)(b)”.

(40) For paragraph 108(2)(b) substitute—

“(b) if the company has unsecured debts, the unsecured creditors of the company.”

(41) For paragraph 108(3)(b)(ii) substitute—

“(ii) the preferential creditors of the company.”

(42) After paragraph 108(3) insert—

“(3A) Whether the company’s unsecured creditors or preferential creditors consent is to be determined by the administrator seeking a decision from those creditors as to whether they consent.”

(43) Omit paragraph 108(4).

(44) In paragraph 111, omit the definitions of “correspondence” and “creditors’ meeting”.