Companies (Amendment) (No. 2) Act, 1999

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Amendment of section 24 of Act of 1990.

24.—Section 24 of the Act of 1990 is hereby amended—

(a) in subsection (2), by the addition of the following paragraph after paragraph (c):

“(d) in case the company is a company referred to in paragraph (b) or (c) of section 3(2), the Central Bank.”,

(b) in subsection (4), by the substitution of the following paragraph for paragraph (a):

“(a) unless at least one class of creditors whose interests or claims would be impaired by implementation of the proposals has accepted the proposals, or”,

(c) by the insertion of the following subsection after subsection (4):

“(4A) Without prejudice to subsection (4), the court shall not confirm any proposals in respect of a company to which an examiner has been appointed under section 4 if the proposals would have the effect of impairing the interests of the creditors of the company in such a manner as to favour the interests of the creditors or members of any company to which it is related, being a company to which that examiner has been appointed examiner under section 2 or, as the case may be, 4.”,

(d) in subsection (11), by the deletion in paragraph (b) of “members and”,

and

(e) by the substitution of the following subsection for subsection (12) (inserted by the Companies Act, 1990 ):

“(12) Notwithstanding subsection (4), or any other provision of this Act, nothing in this Act shall prevent the examiner from including in a report under section 18 proposals which will not involve the impairment of the interests of members or creditors of the company, nor the court from confirming any such proposals.”,

and the said paragraph (b) of the said subsection (11), as so amended, is set out in the Table to this section.

TABLE

(b) the report of an examiner under section 18 concludes that, following the required meetings of creditors of a company under this Act, it has not been possible to reach agreement on a compromise or scheme of arrangement.