Rule 4.67 Entitlement to vote (creditors)I1
England and Wales
Subject as follows in this Rule and the next, at a meeting of creditors a person is entitled to vote as a creditor only if—
there has been duly lodged (in a winding up by the court by the time and date stated in the notice of the meeting) a proof of the debt claimed to be due to him from the company
claimed to be due to him from the company, or
in relation to a member State liquidator, is claimed to be due to creditors in proceedings in relation to which he holds office, and the claim has been admitted under Rule 4.70 for the purpose of entitlement to vote, and
there has been lodged, by the time and date stated in the notice of the meeting, any proxy requisite for that entitlement.
The court may, in exceptional circumstances, by order declare the creditors, or any class of them, entitled to vote at creditors' meetings, without being required to prove their debts.
Where a creditor is so entitled, the court may, on the application of the liquidator, make such consequential orders as it thinks fit (as for example an order treating a creditor as having proved his debt for the purpose of permitting payment of dividend).
A creditor shall not vote in respect of a debt for an unliquidated amount, or any debt whose value is not ascertained, except where the chairman agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote and admits his proof for that purpose.
A secured creditor is entitled to vote only in respect of the balance (if any) of his debt after deducting the value of his security as estimated by him.
A creditor shall not vote in respect of a debt on, or secured by, a current bill of exchange or promissory note, unless he is willing—
to treat the liability to him on the bill or note of every person who is liable on it antecedently to the company, and against whom a bankruptcy order has not been made (or, in the case of a company, which has not gone into liquidation), as a security in his hands, and
to estimate the value of the security and (for the purpose of entitlement to vote, but not for dividend) to deduct it from his proof.
No vote shall be cast by virtue of a debt more than once on any resolution put to the meeting.
Where—
a creditor is entitled to vote under this Rule and Rule 4.70 (admission of proof),
has lodged his claim in one or more sets of other proceedings, and
votes (either in person or by proxy) on a resolution put to the meeting, only the creditor’s vote shall be counted.
Where—
a creditor has lodged his claim in more than one set of other proceedings, and
more than one member State liquidator seeks to vote by virtue of that claim,
the entitlement to vote by virtue of that claim is exercisable by the member State liquidator in main proceedings, whether or not the creditor has lodged his claim in the main proceedings.
For the purposes of paragraphs (7) and (8), “other proceedings” means main proceedings, secondary proceedings or territorial proceedings in another member State.
Annotations
Textual amendments
- F1
Words in rule 4.67(1)(a) substituted (31.5.2002) by The Insolvency (Amendment) Rules 2002 (S.I. 2002/1307), rules 1, 6(6)(a) (with rule 3)
- F2
Rule 4.67 inserted (31.5.2002) by The Insolvency (Amendment) Rules 2002 (S.I. 2002/1307), rules 1, 6(6)(b) (with rule 3)