The Insolvency (Northern Ireland) Order 1989

[F1 41.— (1 )F2  The meetings summoned under paragraph 39 shall decide whether to approve the proposed voluntary arrangement (with or without modifications). N.I.

(2) The modifications may include one conferring the functions proposed to be conferred on the nominee on another person qualified to act as an insolvency practitionerF3 ... in relation to the voluntary arrangement.

(3) The modifications shall not include one by virtue of which the proposal ceases to be a proposal such as is mentioned in Article 14.

(4) A meeting summoned under paragraph 39 shall not approve any proposal or modification which affects the right of a secured creditor of the company to enforce his security, except with the concurrence of the creditor concerned.

(5) Subject to sub-paragraph (6), a meeting so summoned shall not approve any proposal or modification under which—

(a) any preferential debt of the company is to be paid otherwise than in priority to such of its debts as are not preferential debts, F4 ...

[F5 (aa) any ordinary preferential debt of the company is to be paid otherwise than in priority to any secondary preferential debts that it may have,]

(b) a preferential creditor of the company is to be paid an amount in respect of [F6 an ordinary preferential debt] that bears to that debt a smaller proportion than is borne to [F7 another ordinary] preferential debt by the amount that is to be paid in respect of that other debt, [F8 F9 ...

(c) a preferential creditor of the company 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,] [F10 or

(d) if the company 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 150ZZA(2) or (3).]

(6) The meeting may approve such a proposal or modification with the concurrence of the F11 ... creditor concerned.

(7 )F2  The directors of the company may, before the beginning of the period of 7 days which ends with the meetings (or either of them) summoned under paragraph 39 being held, give notice to the nominee of any modifications of the proposal for which the directors intend to seek the approval of those meetings.

(8) References in this paragraph to preferential debts [F12 , ordinary preferential debts, secondary preferential debts] and preferential creditors are to be read in accordance with Article 346.]

F1 2002 NI 6

F2 mod. by SR 2004/307

F3 Words in Sch. A1 para. 41(2) repealed (1.4.2016) by Insolvency (Amendment) Act (Northern Ireland) 2016 (c. 2), s. 28(2), Sch. 3 para. 17(b), Sch. 4; S.R. 2016/203, art. 2

F4 Word in Sch. A1 para. 41(5)(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), 21(2)(a) (with art. 3)

F5 Sch. A1 para. 41(5)(aa) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 21(2)(b) (with art. 3)

F6 Words in Sch. A1 para. 41(5)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 21(2)(c)(i) (with art. 3)

F7 Words in Sch. A1 para. 41(5)(b) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 21(2)(c)(ii) (with art. 3)

F8 Sch. A1 para. 41(5)(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), 21(2)(d) (with art. 3)

F9 Word in Sch. A1 para. 41(5)(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), 30(2) (with art. 3)

F10 Sch. A1 para. 41(5)(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), 30(3) (with art. 3)

F11 Word in Sch. A1 para. 41(6) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 30(4) (with art. 3)

F12 Words in Sch. A1 para. 41(8) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 21(3) (with art. 3)