Section 491 CAMA 2020

Section 491 Companies and Allied Matters Act is about Revision of administrator’s proposal. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) This section applies where—

(a) an administrator’s proposals have been approved with or without modification at an initial creditors’ meeting ;

(b) the administrator proposes a revision to the proposals ; and

(c) the administrator thinks that the proposed revision is substantial.

(2) The administrator shall—

(a) summon a creditors’ meeting ;

(b) send a statement in the prescribed form of the proposed revision with the notice of the meeting sent to each creditor ;

(c) send a copy of the statement, within the prescribed period, to each member of the company of whose address he is aware ; and

(d) present a copy of the statement to the meeting.

(3) The administrator is deemed to have complied with subsection(2) (c) if he publishes a notice undertaking to provide a copy of the statement free of charge to any member of the company who applies in writing to a specified address.

(4) A notice under subsection (3) shall be published—

(a) in the prescribed manner ; and

(b) within the prescribed period.

(5) A creditors’ meeting to which a proposed revision is presented shall consider it and may approve it—

(a) without modification ; or

(b) with modification to which the administrator consents.

(6) After the conclusion of a creditors’ meeting, the administrator shall,as soon as is reasonably practicable, report any decision taken to—

(a) the Court ;

(b) the Commission ; and

(c) such other persons as may be prescribed by the Minister.

(7) An administrator commits an offence if he fails, without reasonable excuse, to comply with subsection (6).