Section 437 CAMA 2020

Section 437 Companies and Allied Matters Act is about Decisions of meetings. It is under Chapter 17 (Company voluntary arrangements) of the Act.

(1) The meetings summoned shall decide whether to approve the proposed voluntary arrangement with or without modifications.

(2) The modifications may include conferring the functions proposed tobe conferred on the nominee on another person qualified to act as an insolvency practitioner in relation to the company but shall not include any modification by virtue of which the proposal ceases to be a proposal such as is mentioned in section 434.

(3) A meeting so summoned shall not approve any proposal or modification which affects the right of a secured creditor of the company to enforce his security, except with the concurrence of the creditor concerned.

(4) A meeting so summoned shall not approve any proposal or modificationunder which—

(a) any preferential debt of the company is to be paid otherwise than in priority to such of its debts as are not preferential debts ; or

(b) a preferential creditor of the company is to be paid an amount in respect of a preferential debt that bears to that debt a smaller proportion than is borne to another preferential debt by the amount that is to be paid in respect of that other debt provided that the meeting may approve such a proposal or modification with the concurrence of the preferential creditor concerned.

(5) Subject to the provisions of this section, each of the meetings shall be conducted in accordance with the rules.

(6) After the conclusion of either meeting in accordance with the rules,the chairman of the meeting shall report the result of the meeting to the Court,and, immediately after reporting to the Court, shall give notice of the result of the meeting to such persons as may be prescribed.