{"id":990,"date":"2015-09-18T15:14:23","date_gmt":"2015-09-18T14:14:23","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blsblog\/?p=990"},"modified":"2015-09-18T15:14:23","modified_gmt":"2015-09-18T14:14:23","slug":"iva-revoked-due-to-material-irregularities-at-the-creditors-meeting","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/iva-revoked-due-to-material-irregularities-at-the-creditors-meeting\/","title":{"rendered":"IVA revoked due to material irregularities at the creditors\u2019 meeting"},"content":{"rendered":"<p><a href=\"https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/blue_robm_panel.jpg\"><img decoding=\"async\" class=\"size-full wp-image-21 alignleft\" src=\"https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/blue_robm_panel.jpg\" alt=\"blue_robm_panel\" width=\"160\" height=\"140\" \/><\/a>In the recent case of Rowbury \u2013v- Official Receiver (2015) the High Court revoked an Individual Voluntary Arrangement (IVA) because at the creditors meeting called to consider the IVA proposal, there were material irregularities relating to the admittance of creditor proofs of debt and the chairman\u2019s failure to order a suspension of the meeting.<\/p>\n<p>The case concerned an IVA proposal put forward by a bankrupt.\u00a0 The IVA proposal was the bankrupt\u2019s second attempt at getting his IVA proposals approved.\u00a0 The second IVA proposal was approved but some of the creditors had voted against the IVA and challenged the decision to approve it under <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/1986\/45\/section\/262\">Section 262 Insolvency Act 1986<\/a>.\u00a0 They asserted that the chairman\u2019s failure to suspend the meeting for one hour constituted a material irregularity.\u00a0 The chairman had refused to suspend the meeting even though he was aware that one creditor wished to submit a revised proxy vote and another creditor wished to attend and vote on the IVA proposals although that creditor was not present at the start of the meeting.\u00a0 The same creditors also argued that the chairman had incorrectly admitted certain creditor claims.<\/p>\n<p>The court found that the failure to suspend the meeting, so that a creditor could vote correctly by sending a revised proxy and to enable another creditor to vote, was an error of judgement constituting an irregularity which was material because it affected the outcome of the meeting.\u00a0 Consequently, the court set aside the approval of the IVA.<\/p>\n<p>This case is the first reported example of the court looking at when a chairman should exercise his discretion to suspend a meeting to approve an IVA under <a href=\"https:\/\/www.legislation.gov.uk\/uksi\/1986\/1925\/article\/5.24\/made\">Rule 5.24(4a) Insolvency Rules 1986<\/a>.<\/p>\n<p>Should you have any comments on this case or insolvency for creditors please contact Rob Moore at Taylor &amp; Emmet LLP on 0114 218 4051.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the recent case of Rowbury \u2013v- Official Receiver (2015) the High Court revoked an Individual Voluntary Arrangement (IVA) because at the creditors meeting called to consider the IVA proposal, there were material irregularities relating to the admittance of creditor proofs of debt and the chairman\u2019s failure to order a [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":3803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1495],"tags":[1636,846,1749,1752,1758,1922],"class_list":["post-990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insolvency","tag-creditors","tag-high-court","tag-individual-voluntary-agreement","tag-insolvency","tag-iva","tag-revocation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - 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