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Section 630 of Insolvency Act CAP 53: Approved proposal to take effect as voluntary arrangement and to be binding on company and its creditors

    

(1) A directors' proposal (with or without modifications) takes effect as a voluntary arrangement by the company on the day after the date on which it is approved by the Court by order made under section 629(7)(a) or on such later date as may be specified in the order.
(2) On taking effect, a voluntary arrangement binds— (a) every member of the company who—
(i) was entitled to vote at the meeting of the company (whether present or represented at the meeting or not); or
(ii) would have been so entitled if the member had received notice of that meeting; and
(b) every person (including a secured creditor and a preferential creditor) who—
(i) was entitled to vote at the meeting of creditors (whether present or represented at the meeting or not); or
(ii) would have been so entitled if the person had received notice of that meeting, as if the member or person were a party to the arrangement.
(3) On the approved proposal taking effect as a voluntary arrangement, the provisional supervisor becomes the supervisor of the arrangement unless that supervisor has been replaced in accordance with section 628(5).
(4) If, when a voluntary arrangement ceases to have effect—
(a) any amount payable under the arrangement to a person bound because of subsection (2)(b) (ii) has not been paid; and
(b) the arrangement did not end prematurely, the company becomes, at that time, liable to pay to that person the amount payable under the arrangement.
(5) If the company is in liquidation or under administration, the Court may make either or both of the following orders—
(a) an order staying all proceedings in the liquidation, or terminating or suspending the appointment of the administrator;
(b) an order giving such directions with respect to the further conduct of the liquidation or the administration as it considers will further the implementation of the voluntary arrangement.
(6) However, the Court may not make an order under subsection (5)(a)—
(a) at any time within thirty days after the first day on which a report required by section 628(9) has been made to the Court; or (b) at any time—
(i) while an application under section 631, or an appeal in respect of an order made under that section, is pending;
(ii) while an appeal against an order made under that section is pending; or (iii) during the period within which such an appeal may be made.

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