Section 546 CAMA 2020

Section 546 Companies and Allied Matters Act is about Variation of time. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) A period specified in sections 483(5), 487 (1)(b), or 488 (2) of this Act may be varied in respect of a company by the administrator with consent.

(2) In subsection (1), “consent” means consent of—

(a) each secured creditor of the company ; and

(b) creditors whose debts amount to more than 50% of the company’s unsecured debts, if the company has unsecured debts, disregarding debts of any creditor who does not respond to an invitation to give or withhold consent.

(3) Where the administrator has made a statement under section 486 of this Act—“consent” means—

(a) consent of each secured creditor of the company ; or

(b) if the Administrator thinks that a distribution may be made to preferential creditors, consent of—

(i) each secured creditor of the company, and

(ii) preferential creditors whose debts amount to more than 50%of the total preferential debts of the company, disregarding debts of any creditor who does not respond to an invitation to give or withhold consent.

(4) Consent for the purposes of subsection (1) may be—

(a) written ; or

(b) signified at a creditors’ meeting.

(5) The power to extend under subsection (1)—

(a) may be exercised in respect of a period only once ;

(b) shall not be used to extend a period by more than 28 days ;

(c) shall not be used to extend a period which has been extended by the Court ; and

(d) shall not be used to extend a period after expiry.