Companies Act 2014

F331[Court hearing in case of objection

558ZD

558ZD. (1) An objection by a creditor or member under section 558ZC shall be set down for hearing by the relevant court as soon as may be after receipt of the objection by the relevant court.

(2) The following persons may appear and be heard at a hearing under subsection (1):

(a) the eligible company;

(b) the process adviser;

(c) any creditor or member whose claim or interest would be impaired if the rescue plan were implemented;

(d) the directors of the eligible company;

(e) any other person the relevant court considers appropriate.

(3) Any person entitled to appear and be heard at a hearing under subsection (1) shall be limited in the person’s submissions to the issues raised in any notice of objection under section 558ZC unless—

(a) an objection is upheld,

(b) the relevant court proposes to modify the rescue plan, and

(c) the High Court considers winding up the company.

(4) Where an objection is made under section 558ZC, the onus of proof shall be on the process adviser to establish that the objection should not be upheld.

(5) At a hearing under subsection (1) the relevant court may, as it thinks proper, subject to the provisions of this section and section 558ZE

(a) dismiss the objection, or

(b) uphold the objection.

(6) Subject to subsection (8), an objection shall not be dismissed if the rescue plan contains a provision relating to a lease of, or any hiring agreement in relation to, property other than land and, in the opinion of the relevant court—

(a) subject to section 558R(1) the value of that property is substantial, and

(b) that provision is of like effect to a provision referred to in section 558R(1)(a) or (b).

(7) In deciding, for the purpose of subsection (6), whether the value of the property concerned is substantial, the matters to which the relevant court shall have regard shall include the length of the unexpired term of the lease or hiring agreement concerned.

(8) If the lessor or owner of the property concerned has consented in writing in the prescribed form to the inclusion of the provision referred to in subsection (6) in the rescue plan—

(a) subsection (6) shall not apply, and

(b) subsection (9)(a) shall not be subject to section 558R(1).

(9) Where the relevant court upholds an objection under this section, the relevant court may make such order as it deems fit, including, but not limited to the following, namely:

(a) an order modifying the rescue plan;

(b) an order approving the modifications of the rescue plan;

(c) an order that the decision of any meeting be set aside;

(d) an order that any meeting be reconvened.

(10) The relevant court shall not approve a modified rescue plan unless the relevant court is satisfied that—

(a) the modified rescue plan is fair and equitable in relation to any member or creditor whose interests or claims would be impaired by implementation,

(b) the modified rescue plan is not unfairly prejudicial to the interests of any interested party, and

(c) the modified rescue plan is compliant with this Act,

and in any case shall not approve any modified rescue plan if the sole or primary purpose of it is the avoidance of payment of tax due.

(11) Where the relevant court dismisses an objection under section 558ZC(3)(g), the relevant court shall be deemed to have approved the repudiation of the contract concerned.

(12) Where the relevant court dismisses an objection or approves a modified rescue plan, the rescue plan shall, subject to section 558ZZ(9) be binding on all the members or class or classes of members, as the case may be, affected by the rescue plan and also on the eligible company.

(13) Where the relevant court dismisses an objection or approves a modified rescue plan, the rescue plan shall, notwithstanding any other enactment but subject to section 558ZZ(10), be binding on all the creditors or the class or classes of creditors, as the case may be, affected by the rescue plan in respect of any claim or claims against the eligible company and any person other than the company who, under any enactment, rule of law or otherwise, is liable for all or any part of the debts of the company.]

Annotations:

Amendments:

F331

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.