Insolvency Act 1986

[F1246ZEDecisions by creditors and contributories: generalE+W+S

(1)This section applies where, for the purposes of this Group of Parts, a person (“P”) seeks a decision about any matter from a company's creditors or contributories.

(2)The decision may be made by any qualifying decision procedure P thinks fit, except that it may not be made by a creditors' meeting or (as the case may be) a contributories' meeting unless subsection (3) applies.

(3)This subsection applies if at least the minimum number of creditors or (as the case may be) contributories make a request to P in writing that the decision be made by a creditors' meeting or (as the case may be) a contributories' meeting.

(4)If subsection (3) applies P must summon a creditors' meeting or (as the case may be) a contributories' meeting.

(5)Subsection (2) is subject to any provision of this Act, the rules or any other legislation, or any order of the court—

(a)requiring a decision to be made, or prohibiting a decision from being made, by a particular qualifying decision procedure (other than a creditors' meeting or a contributories' meeting);

(b)permitting or requiring a decision to be made by a creditors' meeting or a contributories' meeting.

(6)Section 246ZF provides that in certain cases the deemed consent procedure may be used instead of a qualifying decision procedure.

(7)For the purposes of subsection (3) the “minimum number” of creditors or contributories is any of the following—

(a)10% in value of the creditors or contributories;

(b)10% in number of the creditors or contributories;

(c)10 creditors or contributories.

(8)The references in subsection (7) to creditors are to creditors of any class, even where a decision is sought only from creditors of a particular class.

(9)In this section references to a meeting are to a meeting where the creditors or (as the case may be) contributories are invited to be present together at the same place (whether or not it is possible to attend the meeting without being present at that place).

(10)Except as provided by subsection (8), references in this section to creditors include creditors of a particular class.

(11)In this Group of Parts “qualifying decision procedure” means a procedure prescribed or authorised under paragraph 8A of Schedule 8.]