This appeal concerned two issues of principle relating to the approval of an individual voluntary arrangement. One was as to whether, where there has been an assignment of part of a debt, which can only take effect in equity, the person entitled to vote at the creditors’ meeting called to approve the IVA was the assignor or the assignee. The second was whether there has been a ‘material irregularity’ at or in relation to such a meeting within the 1986 Act section 262(1)(b) if account has been taken of the vote of a creditor who has taken an assignment of part of a debt from an associate of the debtor, the assignment was for no commercial purpose and on uncommercial terms, and was solely for the purpose of enabling the assignee to vote in favour of the IVA, and, had the vote been left out of account, the IVA would not have secured the majority of votes required under the Insolvency Rules 1986.
Judges:
Pill, Etherton LJJ, Sir Mark Potter
Citations:
[2011] EWCA Civ 1083, [2012] 1 All ER 1201, [2011] NPC 97, [2012] Bus LR D25, [2011] BPIR 1680
Links:
Statutes:
Jurisdiction:
England and Wales
Insolvency
Updated: 20 September 2022; Ref: scu.445040