Section 486 CAMA 2020

Section 486 Companies and Allied Matters Act is about Administrator’s proposals. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) The administrator of a company shall make a statement setting out proposals for achieving the purpose of the administration.

(2) A statement under subsection (1) shall, in particular—

(a) deal with such matters as may be prescribed ; and

(b) where applicable, explain why the administrator thinks that the objective mentioned in section 444 (1) (a) or (b) of this Act cannot be achieved.

(3) Proposals under this section may include—

(a) a proposal for a voluntary arrangement under Chapter 17 of this Act,but this section is without prejudice to section 435 of this Act ; and

(b) a proposal for a scheme of arrangement and compromise or reconstruction to be sanctioned under relevant Parts of this Act.

(4) The administrator shall send a copy of the statement of his proposals to—

(a) the Commission ;

(b) every creditor of the company of whose claim and address he is aware ; and

(c) every member of the company of whose address he is aware.

(5) The administrator shall comply with subsection (4) before the end of 30 days beginning with the day on which the company enters administration.

(6) The administrator is deemed to comply with subsection (4) (c) if he publishes in the prescribed manner, a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the company who applies in writing to a specified address.

(7) An administrator commits an offence if he fails, without reasonable excuse, to comply with subsection (5).

(8) A period specified in this section may be varied in accordance with section 546 of this Act.