Section 9 Ability for creditors to opt not to receive certain notices: company insolvencyI1

After Article 208ZI (inserted by section 101(1) below) insert—

“Creditors’ ability to opt out of receiving certain notices

208ZJ.

(1)

Any provision of the rules which requires an office-holder of a company to give a notice to creditors of the company does not apply, in circumstances prescribed by the rules, in relation to opted-out creditors.

(2)

Paragraph (1)—

(a)

does not apply in relation to a notice of a distribution or proposed distribution to creditors;

(b)

is subject to any order of the High Court requiring a notice to be given to all creditors (or all creditors of a particular category).

(3)

Except as provided by the rules, a creditor may participate and vote in a qualifying decision procedure or a deemed consent procedure even though, by virtue of being an opted-out creditor, the creditor does not receive notice of it.

(4)

In this Article—

• “give” includes deliver, furnish or send;

• “notice” includes any document or information in any other form;

• “office-holder”, in relation to a company, means—

  1. (a)

     a liquidator, provisional liquidator, administrator or administrative receiver of the company, or

  2. (b)

     the supervisor of a voluntary arrangement which has taken effect under Part 2 in relation to the company.”.

After Article 8 insert—

““Opted-out creditor”

8A.

(1)

For the purposes of Parts 2 to 7 “opted-out creditor”, in relation to an office-holder of a company, means a person who—

(a)

is a creditor of the company, and

(b)

in accordance with the rules has elected (or is deemed to have elected) to be (and not to cease to be) an opted-out creditor in relation to the office-holder.

(2)

In this Article, “office-holder”, in relation to a company, means—

(a)

a liquidator, provisional liquidator, administrator or administrative receiver of the company, or

(b)

the supervisor of a voluntary arrangement which has taken effect under Part 2 in relation to the company.”.

In Schedule 5 (provision that may be included in company insolvency rules), after paragraph 5 insert—

“5A.

Provision for enabling a creditor of a company to elect to be, or to cease to be, an opted-out creditor in relation to an office-holder of the company (within the meaning of Article 8A), including, in particular, provision—

(a)

for requiring an office-holder to provide information to creditors about how they may elect to be, or cease to be, opted-out creditors;

(b)

for deeming an election to be, or cease to be, an opted-out creditor in relation to a particular office-holder of a company to be such an election also in relation to any other office-holder of the company.”.