Companies Act 2016 · Updated to 31 Jan 2025 · Chapter III
397. Proposal for voluntary arrangement
Feedback & supportWhere the directors of a company or Official Receiver intend to make a proposal for a voluntary arrangement, the directors or
voluntary arrangement
“voluntary arrangement” means a composition in satisfaction of a company’s debts or a scheme of arrangement of a company’s affairs under Subdivision 1. Subdivision 1 Corporate Voluntary Arrangement Non-application of this Subdivision
Official Receiver shall appoint a nominee and shall submit the following documents to the nominee:
nominee
“nominee” means any person who is qualified to be appointed as an insolvency practitioner whose powers and duties shall include the powers and duties specified in the Seventh Schedule;
a document setting out the terms of the proposed voluntary arrangement; and
a statement of the company’s affairs containing—
the particulars of the company’s creditors and of its debts and other liabilities and of its assets; and
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other information as may be required by the nominee to comply with subsection (2).
For the purposes of subsection (1), the nominee shall submit to the directors, a statement indicating whether or not, in his opinion—
the proposed voluntary arrangement has a reasonable prospect of being approved and implemented;
the company is likely to have sufficient funds available for the company during the proposed moratorium to enable the company to carry on its business; and
that the meetings of the company and its creditors should be summoned to consider the proposed voluntary arrangement.
The nominee is entitled to rely on information submitted to him under subsection (1) in forming his opinion on matters required under subsection (2) unless he has reason to doubt of its accuracy.