Section 440 CAMA 2020
Section 440 Companies and Allied Matters Act is about Challenge of decisions. It is under Chapter 17 (Company voluntary arrangements) of the Act.
(1) Subject to this section, an application to the Court may be made, by any of the persons specified in subsection (2), on the ground that—
(a) a voluntary arrangement which has effect under section 437 unfairly prejudices the interests of a creditor, member or contributory of the company ; or
(2) The persons who may apply under subsection (1) are—
(a) persons entitled, in accordance with the rules, to vote at either of the meetings ;
(b) persons who would have been entitled, in accordance with the rules,to vote at the creditors’ meeting if they had had notice of it ;
(c) the nominees or persons who replaced them under section 435 (4) or437 (2) ; and
(d) if the company is being wound up or is in administration, the liquidator or administrator.
(3) An application under this section shall not be made—
(a) after the end of 28 days beginning with the first day on whicheach of the reports required under section 435 (2) has been made to the Court, or
(b) on which each of the reports required by section 435 (2) has been made to the Court but (subject to that), an application made by a person within this subsection on the ground that the voluntary arrangement prejudices his interests may be made after the arrangement has ceased to have effect, unless it came to an end prematurely.
(4) Where on such an application the Court is satisfied as to either of the grounds mentioned in subsection (1), it may—
(a) revoke or suspend any decision approving the voluntary arrangement which has effect under section 437 or, in a case falling within subsection (1) (b), any decision taken by the meeting in question which has effect under that section ; or
(b) give a direction to any person for the summoning of further meetings to consider any revised proposal, the person who made the original proposal may make or, in the case falling within subsection (1) (b), a further company or creditors’ meeting to reconsider the original proposal.
(5) Where after giving a direction under subsection (4)(b) for the summoning of meetings to consider a revised proposal the Court is satisfied that the person who made the original proposal does not intend to submit a revised proposal, the Court shall revoke the direction and revoke or suspend any decision approving the voluntary arrangement which has effect under section 437.
(6) Where the Court, on an application under this section with respect to any meeting—
(a) gives a direction under subsection (4) (b), or
(b) revokes or suspends an approval under subsection (4) (a) or (5),the Court may give such supplemental directions as it deems fit and, in particular,directions with respect to things done under the voluntary arrangement since it took effect.
(7) Except as provided in this section, a decision taken at a meeting summoned under section 436 is not invalidated by any irregularity at or in relation to the meeting.
