C3C4C5C6Part VIII Individual Voluntary Arrangements
Pt. VIII (ss. 252-263) restricted (6.4.1996 for the purpose only of authorising the making of regulations) by 1995 c. 26, ss. 91(3), 180(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a). Sch. Pt. V
Pt. VIII (ss. 252–263) applied with modifications by S.I. 1986/2142, arts. 1(2), 11, 13(3), 15
Second Group of Parts (Pts. 8-11) modified (31.12.1996) by 1991 c. 57, Sch. 10 (as substituted by 1995 c. 25, s. 120(1), Sch. 22 para. 183 (with ss. 7(6), 115, 117); S.I. 1996/2909, art. 3)
Second Group of Parts (Pts. 8-11) modified (11.11.1999 for specified purposes and 6.4.2002 otherwise) by 1999 c. 30, s. 12(1); S.I. 2002/153, art. 2(b)
Consideration and implementation of debtor’s proposal
C1C2258 Decisions of creditor’s meeting.
1
A creditors’ meeting summoned under section 257 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
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 F1or authorised to act as nominee, in relation to the voluntary arrangement.
But they shall not include any modification by virtue of which the proposal ceases to be a proposal F1under this Part.
4
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.
5
Subject as follows, 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, or
b
a preferential creditor of the debtor is to be paid an amount in respect of a preferential debt that bears to that debt a smaller proportion than is borne to another preferential debt by the amount that is to be paid in respect of that other debt.
However, the meeting may approve such a proposal or modification with the concurrence of the preferential creditor concerned.
6
Subject as above, the meeting shall be conducted in accordance with the rules.
7
In this section “preferential debt” has the meaning given by section 386 in Part XII; and “preferential creditor” is to be construed accordingly.
Pt. VIII (ss. 252-263) applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 5