Companies Act 2014 section 558ZC

Objection to rescue plan

Section 558ZC sets out the grounds on which a creditor or member may object to a rescue plan for a small or micro company, the procedures for filing such an objection, and the restrictions that apply to persons who voted in favour of the plan.

• A creditor or member may file an objection to a rescue plan, which must be sent in prescribed form to both the process adviser and the relevant court
• Objections may only be made on specified grounds, including unfair prejudice, material irregularity at the meeting, acceptance obtained by improper means, or that the plan's main purpose is tax avoidance
• A person who voted to accept the rescue plan may only object if their acceptance was obtained by improper means, or if they later discovered the plan was put forward for an improper purpose
• The process adviser must notify the Registrar within 5 days of receiving notice of an objection, and failure to do so is a category 3 offence