Companies Act 2014 section 558Y

Consideration by members and creditors of rescue plan

Section 558Y sets out how members (shareholders) and creditors vote on a rescue plan for a small or micro company, the threshold for acceptance, and the conditions under which an approved plan becomes legally binding.

• A rescue plan is accepted when 60% in number, representing a majority in value of claims at the meeting, vote in favour (in person or by proxy)
• The plan becomes binding on all affected parties once accepted by at least one impaired creditor class, 21 days pass after filing the notice of approval with the court, and no objection is filed
• Modifications to a rescue plan may only be accepted at a meeting with the consent of the process adviser
• State authorities (including Revenue Commissioners and local authorities) may accept a rescue plan even where their claims would be impaired, regardless of any other legislation