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Article 19 Challenge of decisionsC1

Northern Ireland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to this Article, an application to the High Court may be made, by any of the persons specified in paragraph (2), on one or both of the following grounds, namely—

(a)

that a voluntary arrangementF1 which has effect under Article 17A unfairly prejudices the interests of a creditor, member or contributory of the company;

(b F2)

that there has been some material irregularity at or in relation to either of the meetings.

(2)

The persons who may apply under this Article are—

(a)

a person entitled, in accordance with the rules, to vote at either of the meetings;

F3(aa)

a person who would have been entitled, in accordance with the rules, to vote at the creditors' meeting if he had had notice of it;

(b)

the nominee or any person who has replaced him under Article 15(4) or 17(2); and

(c)

if the company is being wound up orF4is in administration, the liquidator or administrator.

(3)

An application under this Article shall not be made

(a)

after the expiration of 28 days from the day on which each of the reports required by Article 17(6) has been made to the High Court or

(b)

in the case of a person who was not given notice of the creditors' meeting, after the end of the period of 28 days beginning with the day on which he became aware that the meeting had taken place,

but (subject to that) an application made by a person within paragraph (2)(aa) on the ground that the voluntary arrangement prejudices his interests may be made after the arrangement has ceased to have effect, unless it came to an end prematurely.

.

(4)

Where on such an application the High Court is satisfied as to either of the grounds mentioned in paragraph (1), it may do one or both of the following, namely—

(a)

revoke or suspend any decision approving the voluntary arrangement which has effect under Article 17A or, in a case falling within paragraph (1)(b), any decision taken by the meeting in question which has effect under that Article;

(b)

give a direction to any person for the summoning of further meetings to consider any revised proposal the person who made the original proposal may make or, in a case falling within paragraph (1)(b), a further company or (as the case may be) creditors' meeting to reconsider the original proposal.

(5)

Where at any time after giving a direction under paragraph (4)(b) for the summoning of meetings to consider a revised proposal the High Court is satisfied that the person who made the original proposal does not intend to submit a revised proposal, the Court shall revoke the direction and revoke or suspend any decision approving the voluntary arrangement which has effect under Article 17A.

(6)

In a case where the High Court, on an application under this Article with respect to any meeting—

(a)

gives a direction under paragraph (4)(b), or

(b)

revokes or suspends an approval under paragraph (4)(a) or (5),

the Court may give such supplemental directions as it thinks fit and, in particular, directions with respect to things done under the voluntary arrangement since it took effect.

(7)

Except in pursuance of the preceding provisions of this Article, a decision taken at a meeting summoned under Article 16 is not invalidated by any irregularity at or in relation to the meeting.

Annotations

Textual amendments

F1

2002 NI 6

F2

mod. by SR 2004/307

F3

2002 NI 6

F4

Words in art. 19(2)(c) substituted (27.3.2006) by Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)), arts. 1(3), 3(3), Sch. 2 para. 23 (with art. 4); S.R. 2006/21, art. 2 (with S.R. 2006/22, arts. 2 - 7)

Modifications

C1

Art. 19 modified (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 73(1), 87(1)(2), 93(3), Sch. 10 para. 44; S.I. 2011/2329, art. 3(1)

Notes on Part II

Modifications

C1

Pts. II, III applied (with modifications) (14.11.2008) by Insolvency (Company Arrangement or Administration Provisions for an Industrial and Provident Society) Order (Northern Ireland) 2008 (S.R. 2008/445), art. 2

C2

Pt. II (arts. 14-20B) applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 113(6)-(9), 134, 263(1) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.

C3

Pt. 2 modified by S.R. 1995/225, Sch. 1 (as amended (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 24 (with art. 3))

C4

Pts. II, III and IV applied (with modifications) by 1986 c. 53, Sch. 15A, Pt. III (as inserted (1.12.1997) by 1997 c. 32, s. 39(2), Sch. 6); S.I. 1997/2668, art. 2, Sch. Pt. I (as amended (with application in accordance with art. 1(4) of the amending S.I.) by The Building Societies (Floating Charges and Other Provisions) Order 2016 (S.I. 2016/679), arts. 1(1), 4(4))

C5

Pt. 2 modified by S.R. 1995/225, art. 4, Sch. 1 (as modified (28.12.2020 until IP completion day when the amending provision ceases to have effect in accordance with reg. 1(4) of the amending S.I.) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(4), 122(2) (with reg. 108))

C6

Pts. 1-5 modified by S.R. 2004/307 (as amended (1.10.2006) by Limited Liability Partnerships (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/377), reg. 3, Sch. 2; (temp.) (27.4.2020 retrospective) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), Sch. 11 para. 8(1)(2), 14 (with ss. 2(2), 5(2)); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 2 (with reg. 3); (16.2.2021) by The Limited Liability Partnerships (Amendment etc.) Regulations 2021 (S.I. 2021/60), reg. 1(1), Sch. 2 (with reg. 4(2)))

C7

Pt. 2 applied (with modifications) (4.1.2024) by S.I. 2021/716, reg. 44 (as amended by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 18)

C8

Pts. 1-5 applied (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1A para. 3 (as inserted by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), reg. 1(2), Sch. 1)