Paragraph 10 Meeting of creditors and clients to approve statement

(1)

This paragraph applies after the administrator has sent the statement of proposals to the persons listed in paragraph 9(1) unless (subject to sub-paragraph (6)) the FSA has given a direction under regulation 16 and the direction has not been withdrawn.

(2)

Paragraph 50 of Schedule B1 applies save that—

(a)

in sub-paragraph (1), the administrator shall invite the clients to the meeting of creditors and the clients shall be given the prescribed period of notice under sub-paragraph (1)(b); and

(b)

the FSA may appoint a person to attend a meeting of creditors and make representations as to any matter for decision.

(3)

Paragraph 51 of Schedule B1 applies save that—

(a)

the reference to paragraph 49(4)(b) is to paragraph 9(1) of this Schedule; and

(b)

each copy of the statement sent to a client or to the FSA under paragraph 9(1) of this Schedule must be accompanied by an invitation to the initial creditor’s meeting.

(4)

Paragraph 53 of Schedule B1 applies save that in sub-paragraph (2), if the FSA has not appointed a person to attend the meeting, the administrator must also report any decision taken to the FSA.

(5)

If the meeting of creditors is unable to approve the statement, the administrator may apply to court for an order dispensing with the need for the approval of the meeting of creditors, and paragraph 14 applies.

(6)

Where, before the FSA gives a direction under regulation 16, a meeting of creditors has already approved the statement under this paragraph, when the FSA gives its direction a new statement shall be drawn up in accordance with paragraphs 7 to 9 to replace the statement that has already been approved.