Insolvency Act 1986, section 259

Report of decisions to court

Part VIII Individual Voluntary Arrangements

[F621 (1)When pursuant to section 257 the debtor's creditors have decided whether to approve the debtor's proposal (with or without modifications), the nominee (or the nominee's replacement under section 256(3) or 256A(4)) must—

(a)give notice of the creditors' decision to such persons as may be prescribed, and

(b)where the creditors considered the debtor's proposal pursuant to a report to the court under section 256(1)(aa), report the creditors' decision to the court.F621]

(2)If the report is that the [F622creditors haveF622] declined (with or without modifications) to approve the [F623voluntary arrangement proposed under section 256F623] , the court may discharge any interim order which is in force in relation to the debtor.

Definitions used in section 259 1

the debtor

(2) In Schedule 6 “the debtor” means the company or the individual concerned.

Defined in s.386(2) · see it in the full Act

Cases considering section 259 3

Smith-Evans v Smailes

[2013] EWHC 3199 (Ch) · 29 July 2013Interprets

The report of the meeting’s result to the court was treated as the critical stage at which the result is recorded and from which the challenge period runs. (see paras [9]; [25]; [27])

Tradition (UK) Ltd v Ahmed & Ors

[2008] EWHC 2946 (Ch) · 5 December 2008

The court noted the chairman’s duty to report the result of the meeting to the court. The report date was used in the procedural history (see paras [67], [78]).

1 more judgment, and what each says about section 259, are in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F621S. 259(1) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 66(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  2. F622Words in s. 259(2) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 66(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  3. F623Words in s. 259(2) substituted (6.4.2010) by The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 (S.I. 2010/18), art. 8(3)(b)

Modifications

  1. C928Ss. 256–263 applied with modifications by S.I. 1986/1999, art. 3, Sch. I Pt. III