Section 233: Power of Court regarding creditors’ meeting

233. Power of Court regarding creditors’ meeting (1) Where the Court is satisfied that— (a) a resolution at a creditors’ meeting was passed, defeated or required to be decided by a casting vote; (b) the resolution would not have been passed, defeated or required to be decided by a casting vote if the vote cast by a particular related creditor were disregarded; and (c) the passing of the resolution, or the failure to pass it— (i) is contrary to the interests of the creditors, or a class of creditors, as a whole; (ii) has prejudiced or is reasonably likely to prejudice, the interests of the creditor who voted against the resolution, or for it, as the case may be, to an extent that is unreasonable having regard to— (A) the benefits accruing to the related creditor, or to some or all of the related creditors, from the resolution, or from the failure to pass the resolution; I14 – 135 [Issue 3] Insolvency Act (B) the nature of the relationship between the related creditor and the company, or between the related creditors and the company; and (C) any other related matter, the Court may, on the application of a creditor or the administrator— (aa) order that the resolution be set aside; (bb) order that a new meeting be held to consider and vote on the resolution; (cc) order that a specified related creditor or creditors must not vote on the resolution or on a resolution to vary or amend it; or (dd) make any other order that the Court thinks appropriate. (2) In this section— “promoter”— (a) means a person who is instrumental in the formulation of a plan or programme pursuant to which the securities are offered to the public; and (b) where a company is a promoter, includes every person who is a director of the company; but (c) does not include a director or officer of the issuer of the securities or a person acting solely in his professional capacity; “related creditor” means a creditor who is a related entity of the company in administration; “related entity”, in relation to the company in administration, means— (a) a promoter; (b) a relative or spouse of a promoter; (c) a relative of a spouse of a promoter; (d) a director or shareholder; (e) a relative or spouse of a director or shareholder; (f) a relative of a spouse of a director or shareholder; (g) a related company; (h) a beneficiary under a trust of which the company in administration is or has at any time been a trustee; (i) a relative or spouse of that beneficiary; (j) a relative of a spouse of that beneficiary; (k) a company, one of whose directors is also a director of the company in administration; or (l) a trustee of a trust under which a person is a beneficiary, if that person is a related entity of the company in administration under this subsection. [Issue 3] I14 – 136 Revised Laws of Mauritius