Banking Act 2009

113 Company voluntary arrangement

(1) A bank liquidator may make a proposal in accordance with section 1 of the Insolvency Act 1986 (company voluntary arrangement).

(2) Before making a proposal the bank liquidator—

(a) shall present a final report on the bank liquidation to the liquidation committee,

(b) shall send a copy of the report to—

(i) the FSA,

(ii) the FSCS,

(iii) the Bank of England,

(iv) the Treasury, and

(v) the registrar of companies, and

(c) shall make the report available to members, creditors and contributories on request.

(3) A proposal may be made only with the consent of the liquidation committee.

(4) The liquidation committee may consent only if—

(a) it has passed a full payment resolution, and

(b) the bank liquidator is satisfied, as a result of arrangements made with the FSCS, that any depositor still eligible for compensation under the scheme will be dealt with in accordance with section 99(2)(a) or (b).

(5) The bank liquidator must be the nominee (see section 1(2) of the 1986 Act).

(6) Part 1 of the 1986 Act shall apply to a proposal made by a bank liquidator, with the following modifications.

(7) In section 3 (summoning of meetings) subsection (2) (and not (1)) applies.

(8) The action that may be taken by the court under section 5(3) (effect of approval) includes suspension of the bank insolvency order.

(9) On the termination of a company voluntary arrangement the bank liquidator may apply to the court to lift the suspension of the bank insolvency order.