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SOLR_PROP

Credit Union Act, 1997

Consideration of proposals by the Court.

163.(1) The report of the examiner under section 157 shall be set down for consideration by the Court as soon as may be after receipt of the report by the Court.

(2) The following persons shall be entitled to appear and be heard at the hearing under subsection (1)

(a) the examiner;

(b) the Registrar;

(c) the credit union;

(d) the savings protection scheme in which the credit union participates; and

(e) any creditor or member whose claim or interest would be impaired if the proposals for a compromise or scheme of arrangement were implemented;

and the Court may permit to appear and be heard any other person who it considers to have a sufficient interest in the matter.

(3) At a hearing under subsection (1) the Court may, as it thinks proper, subject to the provisions of this section, confirm, confirm subject to modifications, or refuse to confirm the proposals.

(4) The Court shall not confirm any proposals unless one member and one class of creditor whose interests or claims would be impaired by implementation of the proposals have accepted the proposals and the Court is satisfied that—

(a) the proposals are fair and equitable in relation to any member or class of creditors that has not accepted the proposals and whose interests or claims would be impaired by implementation; and

(b) the proposals are not unfairly prejudicial to the interests of any member or creditor;

nor shall the Court confirm any proposals if the sole or primary purpose of them is the avoidance of payment of tax due.

(5) At a hearing under this section, the Registrar or a member or creditor whose interest or claim would be impaired by the proposals may object in particular to their confirmation by the Court on any of the following grounds—

(a) that there was some material irregularity at or in relation to a meeting to which section 162 applies;

(b) that acceptance of the proposals by the meeting was obtained by improper means;

(c) that the proposals were put forward for an improper purpose; or

(d) that the proposals unfairly prejudice the interests of the objector.

(6) Any person who voted to accept the proposals may not object to their confirmation by the Court except on the grounds—

(a) that acceptance of the proposals was obtained by improper means; or

(b) that, after voting to accept the proposals, he became aware that they were put forward for an improper purpose.

(7) Where the Court upholds an objection to the confirmation of any proposals, the Court may make such order as it deems fit, including an order that the decision of any meeting be set aside and an order that any meeting be reconvened.

(8) Notwithstanding subsection (4), or any other provision of this Part, nothing in this Part shall prevent the examiner from including in his report under section 157 proposals which will not involve the impairment of the interests of members or creditors of the credit union, nor the Court from confirming any such proposals.