Companies Act 2014 section 543

Objection to confirmation by court of proposals

Section 543 sets out the grounds on which members or creditors may object to the court's confirmation of an examiner's rescue proposals, and what the court can do if it upholds such an objection.

• A member or creditor whose interests would be impaired may object on grounds including material irregularity at meetings, improper means of obtaining acceptance, improper purpose, unfair prejudice, failure of the best-interest-of-creditors test, or breach of specified conditions
• Where an objection is based on the best-interest-of-creditors test or breach of required conditions, the court must make a decision on the valuation of the company's business, drawing on expert and examiner reports
• A person who voted to accept the proposals may only object on the grounds that acceptance was obtained by improper means or that they subsequently discovered the proposals were put forward for an improper purpose
• If the court upholds an objection, it may make any order it considers appropriate, including setting aside a meeting's decision or directing that a meeting be reconvened