|
___
___
___
___
|
The rules in relation to who can vote
in for or against an Individual Voluntary Arrangement Proposal
and how a Proposal is accepted or rejected is set out in Rules
5.17 and 5.18 of the Insolvency Act. The most important points
to note in respect of voting are detailed below.
- Each creditor who was advised
of the creditors' meeting can vote at the meeting or at
any adjourned meeting as to whether they wish to accept,
reject or make modifications to the proposal.
- The number of votes that a creditor
has is equal to the value of their debt at the date of the
meeting.
- In order for a Proposal to be
approved, modified or rejected, an appropriate resolution
must be passed by the voting creditors.
- In order to pass such a resolution,
there are two stages to the voting:-
- A 75% majority in value
of all those voting must be achieved to approve the
voluntary arrangement or any modification to that arrangement.
If this approval is obtained then:
- Any "associates" or "connected
parties" are not allowed to vote at this stage. In other
words, only creditors independent of the debtor are allowed
to vote.
- For the voluntary arrangement
to fail at this stage, more that 51% in value of the independent
creditors notified of the meeting must vote to reject the
proposal.
- If any other resolutions are
considered at the meeting, which do not affect the proposal
itself or modification thereto, then a 51% majority of all
those then voting is sufficient to carry such a resolution.
|
|
