Companies Act 2014

F330[Objection to rescue plan

558ZC

558ZC. (1) A creditor or member may, subject to this section, file an objection to a rescue plan.

(2) Notice of an objection shall be sent in the prescribed form to—

(a) the process adviser, and

(b) the office of the relevant court.

(3) An objection may be made to a rescue plan on any of the following grounds—

(a) that the rescue plan unfairly prejudices the interests of the objector,

(b) that the rescue plan is unfair and inequitable in relation to the objector,

(c) that there was some material irregularity at or in relation to a meeting to which section 558Y applies,

(d) that a member or creditor has been materially prejudiced by not receiving notice of the meeting or any other notice required to be sent under the Act,

(e) that acceptance of the rescue plan by the meeting was obtained by improper means,

(f) that the rescue plan was put forward for an improper purpose,

(g) that it is not necessary for the survival of the eligible company, and the whole or any part of its undertaking, as a going concern that the contract specified in the objection be repudiated or affirmed,

(h) that the amount of loss or damage determined in respect of the repudiation of the contract specified in the objection is inadequate or excessive,

(i) that the provisions with respect to leases in section 558R apply,

(j) that the sole or primary purpose of the rescue plan is the avoidance of payment of tax due,

(k) that the rescue plan contains an unlawful provision, or

(l) such other grounds as may be prescribed.

(4) Any person who voted to accept the rescue plan referred to in section 558Y may not file an objection under this section except on the grounds—

(a) that such acceptance was obtained by improper means, or

(b) that after voting to accept the rescue plan the person became aware that the rescue plan was put forward for an improper purpose.

(5) Where the relevant court has approved under section 558P the affirmation or repudiation of a contract, an objection may not be made on the ground specified in subsection (3)(g) or (h).

(6) Objections filed in accordance with this section shall be considered by the relevant court in accordance with section 558ZD.]

Annotations:

Amendments:

F330

Inserted (7.12.2021) by Companies (Rescue Process for Small and Micro Companies) Act 2021 (30/2021), s. 3, S.I. No. 673 of 2021.

Editorial Notes:

E92

Power pursuant to subs. (2) exercised (8.12.2021) by Companies Act 2014 (Prescribed Form and Notice) Regulations 2021 (S.I. No. 675 of 2021, in effect as per reg. 1(2).