The Insolvency (Northern Ireland) Order 1989

The proposalN.I.

Those who may propose an arrangementN.I.

14.—(1 )F1 The directors of a company[F2(other than one which is in administration or being wound up)] may make a proposal under this Part to the company and to its creditors for a composition in satisfaction of its debts or a scheme of arrangement of its affairs (referred to, in either case, as a“voluntary arrangement”).

(2) A proposal under this Part is one which provides for some person (“the nominee”) to act in relation to the voluntary arrangement either as trustee or otherwise for the purpose of supervising its implementation; and the nominee must be a person who is qualified to act as an insolvency practitioner F3[F4... in relation to the voluntary arrangement].

(3 )F1 Such a proposal may also be made—

[F5(a)where the company is in administration, by the administrator,]

(b)where the company is being wound up, by the liquidator.

[F6(4) In this Part “company” means—

[F7(a)a company registered under the Companies Act 2006 in Northern Ireland;]

(b)a company incorporated in an EEA State F8...; or

(c)a company not incorporated in an EEA State but having its centre of main interests [F9either] in a member State other than Denmark [F10or in the United Kingdom].

(5) In paragraph (4) in relation to a company, “centre of main interests” has the [F11same meaning as in Article 3 of the EU Regulation.]

(6) If a company incorporated outside Northern Ireland has a principal place of business in England and Wales or Scotland (or both in England and Wales and in Scotland), no proposal under this Part shall be made in relation to it unless it also has a principal place of business in Northern Ireland.]

MoratoriumN.I.

F1214A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure where nominee is not the liquidator or administratorN.I.

15.—(1 )F13 This Article applies where the nominee under Article 14 is not the liquidator or administrator of the company F14....

(2) The nominee shall, within 28 days (or such longer period as the High Court may allow) after he is given notice of the proposal for a voluntary arrangement, submit a report to the Court stating—

(a)[F15whether, in his opinion, the proposed voluntary arrangement has a reasonable prospect of being approved and implemented,]

[F15(aa)]F13whether, in his opinion, meetings of the company and of its creditors should be summoned to consider the proposal, and

(b )F13if in his opinion such meetings should be summoned, the date on which, and time and place at which, he proposes the meetings should be held.

(3 )F13 For the purposes of enabling the nominee to prepare his report, the person intending to make the proposal shall submit to the nominee—

(a)a document setting out the terms of the proposed voluntary arrangement, and

(b)a statement of the company's affairs containing—

(i)such particulars of its creditors and of its debts and other liabilities and of its assets as may be prescribed, and

(ii)such other information as may be prescribed.

[F16(4) The High Court may—

(a )F13on an application made by the person intending to make the proposal, in a case where the nominee has failed to submit the report required by this Article or has died, or

(b )F13on an application made by that person or the nominee, in a case where it is impracticable or inappropriate for the nominee to continue to act as such,

direct that the nominee be replaced as such by another person qualified to act as an insolvency practitionerF17... in relation to the voluntary arrangement.]

Summoning of meetingsN.I.

16.—(1 )F18 Where the nominee under Article 14 is not the liquidator or administrator, and it has been reported to the High Court that such meetings as are mentioned in Article 15(2) should be summoned, the person making the report shall (unless the Court otherwise directs) summon those meetings for the time, date and place proposed in the report.

(2 )F18 Where the nominee is the liquidator or administrator, he shall summon meetings of the company and of its creditors to consider the proposal for such a time, date and place as he thinks fit.

(3) The persons to be summoned to a creditors' meeting under this Article are every creditor of the company of whose claim and address the person summoning the meeting is aware.