Skip to content

Section 397

Proposal for voluntary arrangement

of Companies Act 2016

ActIn forceProvision 397 of 768
Section 397

(a)

a document setting out the terms of the proposed voluntary arrangement; and

(b)

a statement of the company’s affairs containing—

(i)

the particulars of the company’s creditors and of its debts and other liabilities and of its assets; and

Companies 395

(ii)

other information as may be required by the nominee to comply with subsection (2).

(2)

For the purposes of subsection (1), the nominee shall submit to the directors, a statement indicating whether or not, in his opinion—

(a)

the proposed voluntary arrangement has a reasonable prospect of being approved and implemented;

(b)

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

(c)

that the meetings of the company and its creditors should be summoned to consider the proposed voluntary arrangement.

(3)

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.