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Section 311 of Insolvency Act CAP 53: Approval of debtor's proposal

    

(1) This section applies to the decisions taken at the meeting of creditors held in accordance with section 310 to consider a debtor's proposal (with or without modifications).
(2) The debtor's proposal (including any modifications) is approved if it is supported by a majority (in number and value) of the creditors of each group of creditors present (either in person or by proxy) at the meeting of creditors.
(3) For the purposes only of deciding whether the requisite majority by value has voted in favour of a resolution to approve the debtor's proposal, the following provisions apply— (a) the Chairperson of the meeting may— (i) admit or reject proofs of debt; and
(ii) adjourn the meeting in order to admit or reject proofs of debt; (b) a person whose debt is admitted is a creditor.
(4) At any time before the deadline for making an application under this subsection, the debtor or any of the debtor's creditors who attended or was entitled to attend the meeting may make an application to the Court for an order under subsection (7).
(5) The deadline for making an application under subsection (4) is—
(a) the expiry of thirty days after the date on which the meeting of creditors was held; or (b) if the Court extends that period, the expiry of the extended period.
(6) The debtor and any creditor who attended or was entitled to attend the meeting of creditors is entitled to appear and be heard at the hearing of the application even if not the applicant. The right conferred by this subsection may be exercised by such a creditor irrespective of whether the creditor supports or has an interest in the implementation of the proposal.
(7) On the hearing of an application made under subsection (4), the Court may—
(a) make an order approving the proposal (with or without the modifications (if any) put to the meeting of creditors in accordance with section 310); or
(b) make such other order as it considers appropriate, but only if it considers that it would be in the best interests of both the debtor and the debtor's creditors to so.
(8) The Court may make an order under subsection (7)(a) even if the debtor's proposal (or a modification to it) was not approved at the creditors' meeting by a majority of the preferential creditors' group or the unsecured creditors' group, but may do so only if the proposal (or modification)—
(a) has been approved by a majority of the secured creditors' group;
(b) does not discriminate among the members of the dissenting group or groups of creditors and ensures that they will be no worse off than they would have been if the debtor had been adjudged bankrupt; and
(c) respects the priorities of preferential creditors over unsecured creditors.
(9) Section 93(3) and (4) apply in relation to a resolution purporting to be passed in accordance with this section.

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