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245C: Further powers where court orders creditor’s vote be taken into account
or “Court's additional powers after ordering a creditor's vote to be counted”
You could also call this:

“Court can intervene if related creditor unfairly influences vote during company liquidation”

When a company is being liquidated, there’s a process where creditors (people the company owes money to) can vote on important decisions. Sometimes, a creditor who is closely connected to the company (called a related creditor) might vote in a way that unfairly influences the outcome.

If this happens, and the liquidator (the person in charge of winding up the company) finds out about it after the meeting, they need to take action. They must tell all the other creditors about this as soon as they can.

Even though the vote might not have been fair, it still counts unless a court says otherwise. The liquidator or any creditor can ask the court to step in. The court can then decide to cancel the vote, order a new meeting, stop certain related creditors from voting, or make any other decisions they think are necessary to make things fair.

If the liquidator doesn’t tell the other creditors about the problem with the vote, they could get in trouble and face a penalty under section 373(2) of the law.

This rule helps to make sure that decisions made during a company’s liquidation are fair and not unfairly influenced by people closely connected to the company.

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Next up: 246: Interim liquidator

or “Court can appoint temporary manager to protect company assets during liquidation decision”
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Part 16 Liquidations
The process of liquidation

245DPower of court where outcome of voting at meeting of creditors determined by related creditor

  1. This section applies in relation to a resolution at a meeting of creditors if,—

  2. after the meeting, the liquidator becomes aware that a creditor that voted on the resolution is a related creditor; and
    1. the liquidator is satisfied that,—
      1. in accordance with section 245A or 245B, the related creditor’s vote should have been disregarded; and
        1. the resolution would not have been passed, defeated, or required to be decided by a casting vote (as the case may be) if the vote cast by the related creditor (or, if there is more than 1 related creditor, the votes cast by the related creditors) had been disregarded.

        2. Despite sections 245A(1) and 245B(1), the outcome of the vote on the resolution is valid and effective unless the court orders otherwise under subsection (4).

        3. The liquidator must, as soon as practicable after becoming aware that this section applies to the resolution, give notice of that fact to every known creditor.

        4. The court may, on the application of the liquidator or a creditor,—

        5. order that the resolution be set aside or treated as having passed:
          1. order that a new meeting be held to consider and vote on the resolution:
            1. order that a specified related creditor or creditors must not vote on the resolution or on a resolution to vary or amend it:
              1. make any other orders that the court thinks necessary.

                1. A liquidator who fails to comply with subsection (3) commits an offence and is liable on conviction to the penalty set out in section 373(2).

                Notes
                • Section 245D: inserted, on , by section 37 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).