Voluntary arrangements and administration
The proposal must be approved by three-quarters in value of the creditors present and voting and by a simple majority of the members, according to the Insolvency Rules. If the voluntary arrangement is approved, then, if the company is being wound up or if an administration order is in force, the court may stay the winding-up proceedings or discharge the administration order, or it may give such directions as it thinks appropriate to facilitate the implementation of the voluntary arrangement (s 5 of the Insolvency Act 1986). There is a period of 28 days from the date when the nominee reports the results of the meetings’ consideration to the court for members, creditors and others to object to the court (s 4(6) of the Insolvency Act 1986). On the application of a member, contributory creditor, nominee or, if appropriate, liquidator or administrator, the proposal may be challenged on the ground that it unfairly prejudices the interests of a creditor, member or contributory of the company, or that there has been some material irregularity at or in relation to either of the meetings.