C3C4C5PART 15DECISION MAKING

Annotations:
Modifications etc. (not altering text)
C3

Pt. 15 applied in part (with modifications) (temp.) (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 4 paras. 23(1)(a), 24-28 (with ss. 2(2), 5(2), Sch. 4 para. 12)

C1C2C6CHAPTER 8Creditors' voting rights and majorities

Annotations:
Modifications etc. (not altering text)
C2

Pt. 15 Ch. 8 applied (with modifications) (31.1.2019) by The Education Administration Rules 2018 (S.I. 2018/1135), rules 1, 3.29 (with rule 1.2)

Requisite majoritiesC715

1

A decision is made by creditors when a majority (in value) of those voting have voted in favour of the proposed decision, except where this rule provides otherwise.

F21A

Subject to paragraphs (1B) and (1D), a decision in respect of a moratorium under Part A1 of the Act is made when a majority (in value) of those voting have voted in favour of the proposed decision.

1B

A decision is not made if, of the total number of those creditors voting in respect of the proposed decision who are, to the best of the convener’s belief, unconnected with the company, a majority vote against it.

1C

For the purpose of paragraph (1B) a creditor is unconnected unless the convener decides that the creditor is connected.

1D

In the case of a decision which is required by virtue of an order under section A44(3) paragraphs (1A) and (1B) have effect subject to such modifications as may be set out in the court’s order.

F12

In the case of an administration, a decision is not made if those voting against it include more than half in value of the creditors to whom notice of the decision procedure was delivered who are not, to the best of the convener’s or chair’s belief, persons connected with the company.

F33

In the case of a proposed CVA a decision approving a proposal or a modification is made when three-quarters or more (in value) of those responding vote in favour of it.

4

In a proposed CVA a decision is not made if more than half of the total value of the unconnected creditors vote against it.

5

For the purposes of paragraph (4)—

a

a creditor is unconnected unless the convener or chair decides that the creditor is connected with the company;

b

in deciding whether a creditor is connected reliance may be placed on the information provided by the company's statement of affairs or otherwise in accordance with these Rules; and

c

the total value of the unconnected creditors is the total value of those unconnected creditors whose claims have been admitted for voting.

6

In a case relating to a proposed IVA—

a

a decision approving a proposal or a modification is made when three-quarters or more (in value) of those responding vote in favour of it;

b

a decision is not made if more than half of the total value of creditors who are not associates of the debtor vote against it.

7

For the purposes of paragraph (6)—

a

a creditor is not an associate of the debtor unless the convener or chair decides that the creditor is an associate of the debtor;

b

in deciding whether a creditor is an associate of the debtor, reliance may be placed on the information provided by the debtor's statement of affairs or otherwise in accordance with these Rules; and

c

the total value of the creditors who are not associates of the debtor is the total value of the creditors who are not associates of the debtor whose claims have been admitted for voting.