Personal Insolvency Act 2012

108.

Voting rights at creditors’ meetings.

108.— (1) A vote held at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement shall be held in accordance with this section, section 110 and regulations made under section 111 .

(2) Subject to subsection (1), the voting rights exercisable by a creditor at a creditors’ meeting to consider a proposal for a Personal Insolvency Arrangement shall be proportionate to the amount of the debt due by the debtor to the creditor on the day the protective certificate is issued.

(3) In the case of a secured debt, where:

( a) the value of security held by a creditor who is a secured creditor is determined, pursuant to section 105 , to be less than the amount of the secured debt due to the creditor on the day the protective certificate is issued; and

( b) the proposed Personal Insolvency Arrangement provides for all or part (“relevant portion”) of that secured debt to:

(i) rank equally with, and abate in equal proportion to, the unsecured debts covered by the Arrangement; and

(ii) be discharged with those unsecured debts on completion of the obligations specified in the Arrangement,

then, the relevant portion of that secured debt shall, for the purposes of this section (other than this subsection), section 110 and regulations made under section 111 , be treated as unsecured and the creditor concerned may vote in respect of the relevant portion of that debt as an unsecured creditor.

(4) Where a secured creditor consents in writing to the inclusion of terms in the Personal Insolvency Arrangement providing for the surrender to the debtor of his or her security upon the coming into effect of the Arrangement, that creditor shall be treated as an unsecured creditor for the purposes of this section (other than this subsection), section 110 and regulations made under section 111 and shall only be entitled to vote at a creditors’ meeting as an unsecured creditor.

(5) A creditor who is a connected person as respects the debtor may not vote in favour of a proposal for a Personal Insolvency Arrangement at a creditors’ meeting but that creditor may vote against the proposal.

(6) F89 [ ]

(7) Subject to any regulations made under section 111 , only the person who appears to the personal insolvency practitioner to be the owner of the debt (or an agent acting on behalf of that person) shall be entitled to receive notices required to be sent to a creditor under this Chapter or to vote at the creditors’ meeting.

F90 [ (8) (a) Where, at the taking of a vote at a creditors meeting in accordance with subsection (1) , no creditor votes, the proposed Personal Insolvency Arrangement shall be deemed to have been approved under this section.

(b) Where, at the taking of a vote at a creditors meeting in accordance with subsection (1) , the proposal is not approved in accordance with that subsection or deemed under paragraph (a) to have been approved, subject to section 115A , the Personal Insolvency Arrangement procedure shall terminate and the protective certificate issued under section 95 shall cease to have effect. ]

(9) F89 [ ]