Credit Union Act 1997

Proposals for compromise or scheme of arrangement.

161

161. (1) Proposals for a compromise or scheme of arrangement shall—

( a) specify the members and each class of creditors of the credit union;

( b) specify any members or class of creditors whose interests or claims will not be impaired by the proposals;

( c) specify any members or class of creditors whose interests or claims will be impaired by the proposals;

( d) provide equal treatment for each interest or claim of a member or class of creditor unless the holder of a particular interest or claim agrees to less favourable treatment;

( e) provide for the implementation of the proposals;

( f) if the examiner considers it necessary or desirable to do so to ensure that there is a reasonable prospect of the survival of the credit union as a going concern, specify whatever changes should be made in relation to the management or direction of the credit union;

( g) if the examiner considers it necessary or desirable as mentioned in paragraph (f), specify any changes he considers should be made in the rules of the credit union, whether as regards the management or direction of the credit union or otherwise; and

( h) include such other matters as the examiner deems appropriate;

and a copy of the proposals shall be sent to the F300 [ Bank ] in advance of any meeting of members or creditors under section 162 .

(2) A statement of the assets and liabilities (including contingent and prospective liabilities) of the credit union as at the date of the proposals shall be attached to each copy of the proposals sent to the F300 [ Bank ] and submitted to meetings of members and creditors under section 162 .

(3) There shall also be attached to each such copy of the proposals a description of the estimated financial outcome of a winding-up of the credit union for the members and each class of creditors.

(4) The Court may direct that the proposals include whatever other provisions it deems fit.

(5) For the purposes of this section and sections 162 and 163 , a creditor's claim against a credit union is impaired if he receives less in payment of his claim than the full amount due in respect of the claim at the date of presentation of the petition for the appointment of the examiner.

(6) For the purposes of this section and sections 162 and 163 , the interest of a member of a credit union in the credit union is impaired if—

( a) he is deprived of all or any part of the rights accruing to him by virtue of his shareholding in, or membership of, the credit union; or

( b) he is deprived of the whole or part of his shareholding in the credit union.

Annotations:

Amendments:

F300

Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 24 item 111, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.