Credit Union Act 1997

Confirmation or otherwise of proposals by the Court.

164

164. (1) Where the Court confirms proposals for a compromise or scheme of arrangement (with or without modification), the proposals shall be binding on all the members of the credit union and also on the credit union itself.

(2) Where the Court confirms the proposals (with or without modification) the proposals shall, notwithstanding anything in any other enactment, be binding on all the creditors or the class or classes of creditors, as the case may be, affected by the proposals in respect of any claim or claims against the credit union and any person, other than the credit union who, under any enactment, rule of law or otherwise, is liable for all or any part of the debts of the credit union.

(3) Any alterations in, additions to or deletions from the rules of the credit union which are specified in the proposals shall, after confirmation of the proposals by the Court, take effect from the date fixed by the Court; and where the Court confirms proposals, it may make such orders for the implementation of its decision as it deems fit.

(4) A compromise or scheme of arrangement, the proposals for which have been confirmed by the Court, shall come into effect from a date fixed by the Court, being not later than 21 days from the date of their confirmation.

(5) If, at any time after a compromise or scheme of arrangement has come into effect, it appears to the F303 [ Bank ] that an amendment of the rules of the credit union sent to F303 [ it ] under section 14 (2) conflicts with the proposals confirmed by the Court, F303 [ it ] may on that ground refuse to register the amendment, and section 14 (5) shall apply accordingly.

(6) As soon as practicable after the confirmation of proposals by the Court, an office copy of any order made by the Court under this section shall be delivered by the examiner, or by such other person as the Court may direct, to the F303 [ Bank ] for placing on the public file of the credit union.

(7) Where—

( a) the Court refuses to confirm proposals for a compromise or scheme of arrangement for a credit union, or

( b) the report of an examiner under section 157 concludes that, following the required meetings of members and creditors of a credit union under this Part, it has not been possible to reach agreement on a compromise or scheme of arrangement,

the Court may, if it considers it just and equitable to do so, make an order for the winding up of the credit union, or any other order it deems fit.

(8) Where the Court makes an order for the winding-up of a credit union under this Part, the winding-up shall be deemed to have commenced on the date of the making of the order, unless the Court otherwise orders.

Annotations:

Amendments:

F303

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 113, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.