Section 438 CAMA 2020

Section 438 Companies and Allied Matters Act is about Approval of arrangement. It is under Chapter 17 (Company voluntary arrangements) of the Act.

(1) This section applies to a decision, under section 437, with respect to the approval of a proposed voluntary arrangement.

(2) The decision has effect if, in accordance with the rules—

(a) it has been taken by both meetings summoned under section 436 ; or

(b) subject to any order made under subsection (4) it has been taken by the creditors’ meeting summoned under that section.

(3) If the decision taken by the creditors’ meeting differs from that taken by the company meeting, a member of the company may apply to the Court.

(4) An application under subsection (3) shall not be made after the end of 28 days beginning with—

(a) the day on which the decision was taken by the creditors’ meeting ; or

(b) where the decision of the company meeting was taken on a later day, that day.

(5) On an application under subsection (3), the Court may—

(a) order the decision of the company meeting to have effect instead of the decision of the creditors’ meeting ; or

(b) make such other order as it deems fit.