HL Deb 23 October 1985 vol 467 cc1144-5

45A In subsection (3) at end insert ("and given to such persons as may be prescribed in accordance with that section").

45C In subsection (6) at end insert ("or proposed to be done prior to any further order of the court under sub-section 24(3) above").

Lord Bruce of Donington

My Lords, I beg to move Amendments Nos. 45A and 45C. These once again are purely technical amendments. With regard to Amendment No. 45A it is thought that it will take time to get all these orders and meetings organised. Therefore a further latitude should be given specifically. In so far as Amendment No. 45A is concerned—which is to add at the end, and given to such person as may be prescribed in accordance with that section"— I would say that if that amendment is not put in how else can the creditors be certain that they will not lose their rights? If the court is told, but the creditors are not, on the present wording, they would still lose any right to appeal to the courts after 28 days. I beg to move.

Lord Lucas of Chilworth

My Lords, it is provided in subsection (6) of the clause introduced by Amendment No. 43 that the chairman, immediately after reporting to the court the result of a meeting to consider a proposal, shall give notice to such persons as may be prescribed". Where a proposal is approved so as to bind creditors it is intended by the rules to require that that notice is to be given to all creditors so bound who were not represented at the meeting; and that the notice shall include a copy of the proposal in its final form and that it shall be sent to creditors on the day on which the report is filed in the court. I would suggest that this will be sufficient to give adequate opportunity for such creditors to challenge the implementation of the proposals.

The Amendment No. 45C which the noble Lord has moved, adds, I suggest, nothing to the court's power as already provided in relation to a company voluntary arrangement which has been challenged or directions in an administration or winding up where they coexist. The power granted under subsection (6) of the clause which is introduced by Amendment No. 45 is a general power to make such supplemental directions as the court thinks fit. A particular example of how the court may exercise the power is given which makes it clear that the court, in addition to its general power to give directions as to the future conduct of the arrangements, has power to review what has already taken place.

Subsection (3) of the clause introduced by Commons Amendment No. 44 applies where a company is being wound up or is in administration and a voluntary arrangement has been approved and is therefore in effect. Directions thereunder apply to the conduct of the winding-up or the administration and not to the arrangement itself.

We are satisfied that under these two provisions the court has all the necessary powers to give directions. With that assurance, I would invite the noble Lord, Lord Bruce of Donington, to withdraw this associated series of amendments.

Lord Bruce of Donington

My Lords, I am grateful for the noble Lord's explanation. I ask leave to withdraw the amendments.

Amendments, by leave, withdrawn.