The Insolvency (Northern Ireland) Order 1989

The proposal N.I.

Those who may propose an arrangement N.I.

14.—(1 )F1  The directors of a companyF2 (other than one for which an administration order is in force, or which is being wound up) may make a proposal under this Part to the company and to its creditors for a composition in satisfaction of its debts or a scheme of arrangement of its affairs (referred to, in either case, as a“voluntary arrangement”).

(2) A proposal under this Part is one which provides for some person (“the nominee”) to act in relation to the voluntary arrangement either as trustee or otherwise for the purpose of supervising its implementation; and the nominee must be a person who is qualified to act as an insolvency practitioner[F3 or authorised to act as nominee, in relation to the voluntary arrangement].

(3 )F1  Such a proposal may also be made—

F2 (a) where an administration order is in force in relation to the company, by the administrator, and

(b) where the company is being wound up, by the liquidator.

[F4 (4) In this Part a reference to a company includes a reference to a company in relation to which a proposal for a voluntary arrangement may be made by virtue of Article 3 of the EC Regulation.]

F1 mod. by SR 2004/307

F2 prosp. subst. by 2005 NI 10

F3 2002 NI 6

F4 SR 2002/334

[F5 Moratorium N.I.

14A.— (1 )F6  Where the directors of an eligible company intend to make a proposal for a voluntary arrangement, they may take steps to obtain a moratorium for the company.

(2) The provisions of Schedule A1 have effect with respect to—

(a) companies eligible for a moratorium under this Article,

(b) the procedure for obtaining such a moratorium,

(c) the effects of such a moratorium, and

(d) the procedure applicable (in place of Articles 15 to 19 and 20) in relation to the approval and implementation of a voluntary arrangement where such a moratorium is or has been in force.]

F5 2002 NI 6

F6 mod. by SR 2004/307

Procedure where nominee is not the liquidator or administrator N.I.

15.—(1 )F7  This Article applies where the nominee under Article 14 is not the liquidator or administrator of the company[F8 and the directors do not propose to take steps to obtain a moratorium under Article 14A for the company].

(2) The nominee shall, within 28 days (or such longer period as the High Court may allow) after he is given notice of the proposal for a voluntary arrangement, submit a report to the Court stating—

(a) [F9 whether, in his opinion, the proposed voluntary arrangement has a reasonable prospect of being approved and implemented,]

[F9 (aa)] F7 whether, in his opinion, meetings of the company and of its creditors should be summoned to consider the proposal, and

(b )F7 if in his opinion such meetings should be summoned, the date on which, and time and place at which, he proposes the meetings should be held.

(3 )F7  For the purposes of enabling the nominee to prepare his report, the person intending to make the proposal shall submit to the nominee—

(a) a document setting out the terms of the proposed voluntary arrangement, and

(b) a statement of the company's affairs containing—

(i) such particulars of its creditors and of its debts and other liabilities and of its assets as may be prescribed, and

(ii) such other information as may be prescribed.

[F10 (4) The High Court may—

(a )F7 on an application made by the person intending to make the proposal, in a case where the nominee has failed to submit the report required by this Article or has died, or

(b )F7 on an application made by that person or the nominee, in a case where it is impracticable or inappropriate for the nominee to continue to act as such,

direct that the nominee be replaced as such by another person qualified to act as an insolvency practitioner, or authorised to act as nominee, in relation to the voluntary arrangement.]

F7 mod. by SR 2004/307

F8 2002 NI 6

F9 2002 NI 6

F10 2002 NI 6

Summoning of meetings N.I.

16.—(1 )F11  Where the nominee under Article 14 is not the liquidator or administrator, and it has been reported to the High Court that such meetings as are mentioned in Article 15(2) should be summoned, the person making the report shall (unless the Court otherwise directs) summon those meetings for the time, date and place proposed in the report.

(2 )F11  Where the nominee is the liquidator or administrator, he shall summon meetings of the company and of its creditors to consider the proposal for such a time, date and place as he thinks fit.

(3) The persons to be summoned to a creditors' meeting under this Article are every creditor of the company of whose claim and address the person summoning the meeting is aware.

F11 mod. by SR 2004/307