Proxy (Insolvency) meaning

Re Revolution Bars Ltd [2024] EWHC 2949 (Ch) What are the practical implications of this case? Concisely distilling and referencing the pertinent common law, this decision serves as a pointed reminder to practitioners about circumstances in which a 'meeting' may fail to qualify as a meeting for creditor/member meetings and for cross-class cram downs under sections 901F and 901G of the Companies Act 2006 (CA 2006), including considerations around headcount, who is physically in attendance, and the role of proxies. It further illustrates when the fairness of a plan for 'out of the money' creditors ought properly to be weighed, marking an exception to what could otherwise be treated as the default position. The court endorsed, without hesitation, the High Court’s earlier conclusion that the opinions of 'out of the money creditors' carry minimal weight because they lack any real economic stake in the company in this matter as presented to the court...

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Argo Blockchain Plc, Re [2025] EWHC 3395 (Ch) What are the practical implications of this case? First, the ruling delineates the proper approach to class meetings within restructuring plan proceedings. In 2024, the Scottish Outer House of the Court of Session determined that a class meeting could be valid with only a single attendee, provided that attendee held sufficient proxies to make the meeting quorate on the footing that each proxy was treated as a person present (see Re Dobbies Garden Centres Ltd [2024] CSOH 111). Mr Justice Hildyard rejected that position, concluding that where a class contains more than one creditor, no valid meeting can occur unless at least two persons are in attendance. The judgment also includes helpful observations on how the court’s approach may require adjustment when turnout at class meetings is low and participation is notably limited. Secondly, the court offered a useful analysis of the remit of an independent advocate and the extent to which that individual should be permitted to criticise the...

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, which took effect on 6 April 2017, introduced deemed consent and creditors’ decision procedures as the default means for insolvency practitioners (IPs) to engage with creditors, in place of holding physical meetings. Creditors can still seek a physical meeting if they reject the deemed consent or decision procedure proposed by the IP. Such a request must be made by 10% in value of creditors, 10% in number of creditors, or any ten creditors. Accordingly, the rules on proxies remain relevant where a physical meeting is held. For further reading on the available decision-making routes, see Practice Note: The decision-making procedures and deemed consent. What is a proxy? A proxy is a document completed by a creditor, member or contributory that directs or authorises a proxy-holder to represent them at a meeting or meetings—by speaking, voting, abstaining or proposing resolutions. A proxy can be a specific proxy for a particular meeting, or a continuing proxy for the insolvency...

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

Relevant articles The Corporate Rescue and Insolvency and the Journal of International Banking and Finance Law contain a wide selection of helpful articles on Part 26A restructuring plans for restructuring & insolvency lawyers practising in this area, and links to them are provided directly on this page. These items are accessible exclusively to Lexis®Library subscribers only. Date Article Brief description of the article as follows 1 April 2026: Proxy meetings, the gifting principle, and the limits of the rationality test: Re Argo Blockchain plc: (2026) 2 CRI 53. Jordan Cooper, senior associate at Taylor Wessing, offers essential reflections on the High Court’s approval of Argo Blockchain plc’s restructuring plan under Part 26A of the Companies Act 2006. Argo, an English-incorporated holding company undertaking large-scale Bitcoin and wider cryptocurrency mining, was, when the plan proceeded, dual-listed on the London Stock Exchange (LSE) and the NASDAQ Stock Exchange in New York. The judgment furnishes important guidance on allocating restructuring value post-Petrofac, the function of the retail advocate...

The timetable below is illustrative; no deadlines are set by statute. If the company advancing the plan is a regulated entity, the regulator’s rules on when creditors must be notified will shape the schedule. The regulator will also wish to review the proposals and documents, further affecting timing (for relevant factors, see Practice Note: Schemes of arrangement for FCA regulated companies). In addition, where many intermediaries stand between the company and the ultimate beneficial holders of the debt, extra time may be needed for documents to pass through intermediaries and clearing systems, and for creditors to consider the scheme. Date Action From 98 days before the convening hearing Draft the scheme of arrangement, explanatory statement, and proxy form (see Precedents: Scheme of arrangement, Explanatory statement, Form of proxy) Compile a complete list of creditors with contact addresses Where current addresses are unavailable, prepare a note of the steps taken to locate them for inclusion in evidence seeking leave to convene the hearing ...

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Part 1, interpretation and limitation of liability 1 Defined terms and interpretation In these articles, unless the context requires otherwise, defined expressions take the meanings set by the Companies Act 2006 or those cross‑referred within these articles. Defined terms include: address, articles, bankruptcy (including equivalent foreign insolvency), call and call notice, chair and chair of the meeting, clear days, Companies Acts, the company’s lien, director, distribution recipient, document (including electronic form), electronic form and electronic means, eligible director, fully paid, hard copy form, holder, instrument, lien enforcement notice, ordinary resolution, paid, participate, proxy notice, relevant officer, shares, special resolution, subsidiary, transmittee, and writing. The model articles under section 20 are excluded. Unless the context dictates otherwise, other words or expressions bear the same meaning as in the Act when these articles take effect. References to legislation include any subordinate legislation and any amendment, extension, consolidation, re‑enactment or replacement then in force. Words in the singular include the plural and vice versa; masculine includes feminine and neuter; and references...