Entire section

12. Effect of approval of Voluntary Arrangement proposal

(1) This section applies if each of the meetings called under section 10 (Calling of meetings for Voluntary Arrangement proposal) approves the proposed Voluntary Arrangement (with or without modifications).

(2) If each of the meetings approves the Voluntary Arrangement with the same modifications or without modifications, the Voluntary Arrangement as approved by the meetings is the approved Voluntary Arrangement.

(3) If the proposed arrangements approved by the meetings differ from each other, the Court may, on the application of a Person who appears to the Court to be interested, decide which of the proposed arrangements is to be taken to be the approved Voluntary Arrangement.

(4) If there is an approved Voluntary Arrangement under subsection (2) or (3), the approved Voluntary Arrangement:

  1. (a) takes effect as if made by the Company at the meeting of creditors; and
  2. (b) binds every Person who in accordance with the Rules had notice of, and was entitled to vote at, that meeting (whether or not the Person was present or represented at the meeting) as if the Person were a party to the Voluntary Arrangement.

(5) If the Company is being wound up or under receivership, the Court may do either or both of the following:

  1. (a) by order, stay all proceedings in the winding up or discharge the receivership;
  2. (b) give the directions in relation to the conduct of the winding up or the receivership as it considers appropriate for facilitating the Voluntary Arrangement.