Section 489 CAMA 2020

Section 489 Companies and Allied Matters Act is about Restrictions on summoning of initial creditors’ meeting. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) Section 487 (1) of this Act does not apply where the statement of proposals states that the administrator thinks that—

(a) the company has sufficient property to enable each creditor of the company to be paid in full ;

(b) the company has insufficient property to enable a distribution to be made to unsecured creditors other than by virtue of the provisions of this Act; or

(c) neither of the objectives specified in section 444 (1) (a) and (b) ofthis Act shall be achieved.

(2) The Administrator shall summon an initial creditors’ meeting if it is requested—

(a) by creditors of the company whose debts amount to at least 10% of the total debts of the company ;

(b) in the prescribed manner ; and(c) within the prescribed period.

(3) A meeting requested under subsection (2), shall be summoned for a date within the prescribed period.

(4) The period prescribed under subsection (3), may be varied in accordance with section 545 of this Act.