There are changes to the Act mainly designed to bring in the required changes following the abolition of physical meetings in the first instance.
Approval is now by a creditors decision making procedure namely -
Contents of the Proposal
Any proposal must comply with the general principles set out in rule 8.2I IR2016 -
Other than that rule 8.3 sets out the content now required to be in an IVA (replacing rule 5.3(2) IR 1986). It is summarised in table form in categories such as Assets, Liabilities, Guarantees etc.
The proposal must contain a statement of affairs and the contents of this are set out in rule 8.5. This is largely repeated from the old rules save that there is provision in rule 8.6 to omit disclosure (following a Court order) that would either
Interim Orders
This is largely unchanged from existing procedure and is set out in rules 8.8 to 8.18 but it is worth reviewing the rules the first time you make an application as there are changes to format to include -
Consideration of the Proposal
All references to a meeting to consider the proposal are now removed and the process and contents of the notice to creditors is set out in rule 8.22 Insolvency Rules 2016.
The decision date must be not less than 14 days from delivery of the notice and not more than 28 days from the date on which -
Request for a Physical Meeting
A request for a physical meeting can be made by creditors pursuant to rule 15.6 Insolvency Rules 1986 but must be made not later than five business days after the notice to creditors of the decision procedure is delivered.
Where the required proportion of creditors (10 creditors, 10% of total creditors or 10% in value of creditors) the convenor must summon a meeting within 3 business days of the threshold being met.
This meeting needs to comply with rule 15.8 Insolvency Rules 2016.
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