Companies Act 2014 section 558A

Interpretation (Part 10A)

Section 558A defines the key terms used throughout Part 10A of the Act, which establishes the rescue process available to small and micro companies in financial difficulty, and explains when the claims of members and creditors are considered to be "impaired" by a rescue plan.

• The rescue process under Part 10A is available only to "eligible companies," meaning those that qualify as either a small company or a micro company under the relevant size thresholds in the Act.
• A "process adviser" is the person appointed by the directors of an eligible company to oversee the rescue process, and the "rescue period" runs from the date of that appointment resolution until the process adviser's role is formally terminated or they cease to act without being replaced.
• A member's claim is "impaired" if the rescue plan reduces the nominal value of their shares, cuts their fixed dividend, removes any of their shareholder rights, dilutes their percentage ownership, or deprives them of their shareholding entirely.
• A creditor's claim is "impaired" if the rescue plan would result in the creditor receiving less than the full amount owed to them as at the date the resolution to appoint the process adviser was passed.