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The Water Industry (Special Administration) (England and Wales) Rules 2024

United Kingdom · regulation

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In force since 2024-03-19, as the publisher states.

Copy read on 2026-11-10. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 151 provisions
  1. Title and introductory text
  2. 1 Citation and commencement
  3. 2 Extent and application
  4. 3 Revocation
  5. 4 Interpretation
  6. 5 Application of certain rules of the 2016 Rules with modifications
  7. 6 Defined terms (rule 1.2)
  8. 7 Information required to identify persons and proceedings etc. (rule 1.6)
  9. 8 Variations from prescribed contents (rule 1.9)
  10. 9 Standard content of all notices (rule 1.11)
  11. 10 Gazette notices relating to a company (rule 1.12)
  12. 11 The Gazette: evidence, variations and errors (rule 1.14)
  13. 12 Registrar of companies: covering notices (rule 1.20)
  14. 13 Standard contents of all documents (rule 1.21)
  15. 14 Standard contents of documents relating to the office of office-holders (rule 1.22)
  16. 15 Standard contents of documents relating to other events (rule 1.27)
  17. 16 Standard contents of notices to be delivered to persons other than the registrar of companies (rule 1.28)
  18. 17 Standard contents of all notices (rule 1.29)
  19. 18 Standard contents of notices relating to the office of office-holders (rule 1.30)
  20. 19 Standard contents and authentication of applications to the court under Parts A1 to 11 of the Act (rule 1.35)
  21. 20 Application of Chapter (rule 1.36)
  22. 21 Delivery to the creditors and opting out (rule 1.37)
  23. 22 Creditor’s election to opt out (rule 1.38)
  24. 23 Office-holder to provide information to creditors on opting out (rule 1.39)
  25. 24 Electronic delivery of documents (rule 1.45)
  26. 25 Use of website by office-holder to deliver a particular document (sections 246B and 379B) (rule 1.49)
  27. 26 Retention period for documents made available on websites (rule 1.51)
  28. 27 Proof of delivery of documents (rule 1.52)
  29. 28 Delivery of proofs and details of claims (rule 1.53)
  30. 29 Right to copies of documents (rule 1.54)
  31. 30 Charges for copies of documents provided by the office-holder (rule 1.55)
  32. 31 Offence in relation to inspection of documents (rule 1.56)
  33. 32 Right to list of creditors (rule 1.57)
  34. 33 Confidentiality of documents: grounds for refusing inspection (rule 1.58)
  35. 34 Proposed administrator’s statement and consent to act (rule 3.2)
  36. 35 Administration application (paragraph 12 of Schedule B1)
  37. 36 Witness statement in support of administration application (rule 3.6)
  38. 37 Service of application (rule 3.8)
  39. 38 The order (rule 3.13)
  40. 39 Notice of administration order (rule 3.15)
  41. 40 Publication of administrator’s appointment (rule 3.27)
  42. 41 Moratorium (rule 3.27A)
  43. 42 Statement of affairs: release from requirement and extension of time (rule 3.33)
  44. 43 Administrator’s proposals: additional content (rule 3.35)
  45. 44 Administrator’s proposals: statement of pre-administration costs (rule 3.36)
  46. 45 Advertising administrator’s proposals and notices of extension of time for delivery of proposals (paragraph 49 of Schedule B1) (rule 3.37)
  47. 46 Administrator’s proposals: revision (rule 3.42)
  48. 47 Creditors’ decision for the nomination of alternative liquidator (rule 3.42A)
  49. 48 Order of priority (rule 3.51)
  50. 49 Pre-administration costs (rule 3.52)
  51. 50 Administrator’s application for order ending administration (paragraph 79 of Schedule B1) (rule 3.57)
  52. 51 Notice by administrator of court order (rule 3.59)
  53. 52 Moving from administration to creditors’ voluntary winding up (paragraph 83 of Schedule B1) (rule 3.60)
  54. 53 Moving from administration to dissolution (paragraph 84 of Schedule B1) (rule 3.61)
  55. 54 Notice of intention to resign (rule 3.63)
  56. 55 Notice of resignation (paragraph 87 of Schedule B1) (rule 3.64)
  57. 56 Application to court to remove administrator from office (rule 3.65)
  58. 57 Notice of vacation of office when administrator ceases to be qualified to act (rule 3.66)
  59. 58 Deceased administrator (rule 3.67)
  60. 59 Application to replace (rule 3.68)
  61. 60 Appointment of replacement or additional administrator (rule 3.69)
  62. 61 Court rules and practice to apply (rule 12.1)
  63. 62 Preliminary (rule 12.6)
  64. 63 Service or delivery of application (rule 12.9)
  65. 64 Special administrator’s solicitor (rule 12.13A)
  66. 65 Applications under section 176A(5) to disapply section 176A (rule 12.14)
  67. 66 Notice of an order under section 176A(5) (rule 12.16)
  68. 67 Application of this sub-division and interpretation (rule 12.17)
  69. 68 Contents of application (rule 12.18)
  70. 69 Procedure for examination (rule 12.20)
  71. 70 Costs of proceedings under sections 236, 251N and 366 (rule 12.22)
  72. 71 Evidence provided by the official receiver, an insolvency practitioner or a special manager (rule 12.29)
  73. 72 General power of transfer (rule 12.30)
  74. 73 Proceedings commenced in the wrong court (rule 12.31)
  75. 74 Procedure following order for transfer (rule 12.33)
  76. 75 The court file (rule 12.39)
  77. 76 Requirement to assess costs by the detailed procedure (rule 12.42)
  78. 77 Procedure where detailed assessment is required (rule 12.43)
  79. 78 Awards of costs against an office-holder, the adjudicator or the official receiver (rule 12.47)
  80. 79 Applications for costs (rule 12.48)
  81. 80 Costs and expenses of petitioners and other specified persons (rule 12.49)
  82. 81 Orders enforcing compliance (rule 12.52)
  83. 82 Warrants (general provisions) (rule 12.53)
  84. 83 Warrants under sections 236, 251N and 366 (rule 12.55)
  85. 84 Appeals and reviews of court orders in corporate insolvency (rule 12.59)
  86. 85 Shorthand writers: nomination etc. (rule 12.65)
  87. 86 Application of Part 14 and interpretation (rule 14.1)
  88. 87 Provable debts (rule 14.2)
  89. 88 Proving a debt (rule 14.3)
  90. 89 Requirements for proof (rule 14.4)
  91. 90 Costs of proving (rule 14.5)
  92. 91 Allowing inspection of proofs (rule 14.6)
  93. 92 Appeal against decision on proof (rule 14.8)
  94. 93 Office-holder not liable for costs under rule 14.8 (rule 14.9)
  95. 94 Exclusion of proof by the court (rule 14.11)
  96. 95 Administration and winding up by the court: debts of insolvent company to rank equally (rule 14.12)
  97. 96 Administration and winding up: division of unsold assets (rule 14.13)
  98. 97 Moratorium, administration and winding up: estimate of value of debt (rule 14.14)
  99. 98 Secured creditor: value of security (rule 14.15)
  100. 99 Secured creditor: surrender for non-disclosure (rule 14.16)
  101. 100 Secured creditor: redemption by office-holder (rule 14.17)
  102. 101 Secured creditor: test of security’s value (rule 14.18)
  103. 102 Interest (rule 14.23)
  104. 103 Administration: mutual dealings and set-off (rule 14.24)
  105. 104 Gazette notice of intended first dividend or distribution (rule 14.28)
  106. 105 Individual notices to creditors etc. of intended dividend or distribution (rule 14.29)
  107. 106 Contents of notice of intention to declare a dividend or make a distribution (rule 14.30)
  108. 107 Further contents of notice to creditors owed small debts etc. (rule 14.31)
  109. 108 Notice of declaration of a dividend (rule 14.35)
  110. 109 Contents of last notice about dividend (administration, winding up and bankruptcy) (rule 14.37)
  111. 110 Sole or final dividend (rule 14.38)
  112. 111 Administration and winding up: provisions as to dividends (rule 14.39)
  113. 112 Supplementary provisions as to dividends and distributions (rule 14.40)
  114. 113 Administration and winding up: non-payment of dividend (rule 14.45)
  115. 114 Application of Part (rule 15.1)
  116. 115 Interpretation (rule 15.2)
  117. 116 The prescribed decision procedures (rule 15.3)
  118. 117 Physical meetings (rule 15.6)
  119. 118 Deemed consent (sections 246ZF and 379ZB) (rule 15.7)
  120. 119 Notices to creditors of decision procedure (rule 15.8)
  121. 120 Voting in a decision procedure (rule 15.9)
  122. 121 Notice of decision procedures or of seeking deemed consent: when and to whom delivered (rule 15.11)
  123. 122 Gazetting and advertisement of meeting (rule 15.13)
  124. 123 Notice to company officers, bankrupts etc. in respect of meetings (rule 15.14)
  125. 124 Chair at meetings (rule 15.21)
  126. 125 The chair – attendance, interventions and questions (rule 15.22)
  127. 126 Adjournment by chair (rule 15.23)
  128. 127 Adjournment in absence of chair (Rule 15.25)
  129. 128 Proofs in adjournment (rule 15.26)
  130. 129 Creditors’ voting rights (rule 15.28)
  131. 130 Calculation of voting rights (rule 15.31)
  132. 131 Calculation of voting rights: special cases (rule 15.32)
  133. 132 Requisite majorities (rule 15.34)
  134. 133 Appeals against decisions under this Chapter (rule 15.35)
  135. 134 Record of a decision (Rule 15.40)
  136. 135 Company meetings (rule 15.41)
  137. 136 Indication to excluded person (rule 15.45)
  138. 137 Complaint (rule 15.46)
  139. 138 Use of proxies by the chair (rule 16.5)
  140. 139 Right of inspection and retention of proxies (rule 16.6)
  141. 140 Instrument conferring authorisation to represent corporation (rule 16.9)
  142. 141 Reporting by the office-holder (rule 18.2)
  143. 142 Contents of progress reports in administration, winding up and bankruptcy (rule 18.3)
  144. 143 Progress reports in administration: timing (rule 18.6)
  145. 144 Administration, creditors’ voluntary liquidation and compulsory winding up: reporting distribution of property to creditors under rule 14.13 (rule 18.10)
  146. 145 Remuneration principles (rule 18.16)
  147. 146 Remuneration of joint office-holders (rule 18.17)
  148. 147 Remuneration: application to the court to fix the basis (rule 18.23)
  149. 148 Remuneration: new administrator, liquidator or trustee (rule 18.31)
  150. 149 First excepted case (rule 22.4)
  151. SCHEDULE Application of the 2016 Rules for the purposes of these Rules

Proposed changes to this act

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151 provisions

120 Voting in a decision procedure (rule 15.9)

Rule 15.9 has effect as if, in paragraph (2), the words from “in respect of” to “a bankruptcy” were omitted.

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121 Notice of decision procedures or of seeking deemed consent: when and to whom delivered (rule 15.11)

Rule 15.11 has effect as if for the table in paragraph (1) there were substituted the following table— Proceedings | Decisions | Persons to whom notice must be delivered | Minimum notice required Special administration | Decisions of creditors | The creditors who had claims against the company at the date when the company entered special administra- tion (except for those who have subsequently been paid in full) | 14 days

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122 Gazetting and advertisement of meeting (rule 15.13)

Rule 15.13 has effect as if, in paragraph (1), for “In an administration” to “where” there were substituted “Where”.

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123 Notice to company officers, bankrupts etc. in respect of meetings (rule 15.14)

Rule 15.14 has effect as if— (a) in paragraph (1), for “In a decision procedure” to “by the court notice” there were substituted “Notice”; (b) paragraphs (2) and (3) were omitted.

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124 Chair at meetings (rule 15.21)

Rule 15.21 has effect as if for that rule there were substituted— Chair at meetings 15.21. The chair of the meeting must be either the special administrator or an appointed person. .

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125 The chair – attendance, interventions and questions (rule 15.22)

Rule 15.22 has effect as if, in sub-paragraph (c)(ii), “bankrupt or” were omitted.

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126 Adjournment by chair (rule 15.23)

Rule 15.23 has effect as if, in paragraph (1), “and to rule 15.23A or 15.24” were omitted.

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127 Adjournment in absence of chair (Rule 15.25)

Rule 15.25 has effect as if, in paragraph (1), “in respect of” to “bankruptcy” were omitted.

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128 Proofs in adjournment (rule 15.26)

Rule 15.26 has effect as if “in respect of a moratorium” to “or a bankruptcy” were omitted.

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129 Creditors’ voting rights (rule 15.28)

Rule 15.28 has effect as if— (a) paragraph (A1) were omitted; (b) in paragraph (1)— (i) for “In an administration” to “a creditor” there were substituted “A creditor”; (ii) in sub-paragraph (a), “, subject to rule 15.29,” were omitted; (c) in paragraph (3)(a), “or bankrupt” were omitted; (d) paragraphs (5) and (6) were omitted.

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130 Calculation of voting rights (rule 15.31)

Rule 15.31 has effect as if— (a) in paragraph (1), sub-paragraphs (za), (b), (c), (d) and (e) were omitted; (b) paragraphs (3) and (6) were omitted.

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131 Calculation of voting rights: special cases (rule 15.32)

Rule 15.32 has effect as if paragraphs (A1), (B1), (2)(b) and (3) were omitted.

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132 Requisite majorities (rule 15.34)

Rule 15.34 has effect as if for that rule there were substituted— Requisite majorities 15.34. (1) A decision is made by creditors when a majority (in value) of those voting have voted in favour of the proposed decision, except where this rule provides otherwise. (2) A decision is not made if those voting against it include more than half in value of the creditors to whom notice of the decision procedure was delivered who are not, to the best of the special administrator’s or chair’s belief, persons connected with the company. .

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133 Appeals against decisions under this Chapter (rule 15.35)

Rule 15.35 has effect as if— (a) in paragraph (1), for “by a creditor, by a contributory, or by the bankrupt or debtor (as applicable)” there were substituted “by a creditor or by a contributory”; (b) in paragraph (3)— (i) for the words from the beginning to “that decision” there were substituted “If a decision”; (ii) the words from “but, in a CVA or IVA” to the end were omitted; (c) paragraphs (2), (3A), (3B), (5) and (7) were omitted.

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134 Record of a decision (Rule 15.40)

Rule 15.40 has effect as if paragraph (4)(c) were omitted.

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135 Company meetings (rule 15.41)

Rule 15.41 has effect as if for paragraph (1) there were substituted— (1) Unless the Act or these Rules provide otherwise, a company meeting must be called and conducted, and records of the meeting must be kept, in accordance with the law of England and Wales, including any applicable provision in or made under the Companies Act. .

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136 Indication to excluded person (rule 15.45)

Rule 15.45 has effect as if, in paragraph (3)(b), for “convener” there were substituted “special administrator”.

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137 Complaint (rule 15.46)

Rule 15.46 has effect as if, in paragraph (2)(b), for “convener” there were substituted “special administrator”.

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138 Use of proxies by the chair (rule 16.5)

Rule 16.5 has effect as if, in paragraph (3), “in an administration, creditors’ voluntary winding up, winding up by the court or a bankruptcy” were omitted.

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139 Right of inspection and retention of proxies (rule 16.6)

Rule 16.6 has effect as if— (a) in paragraph (3)(b), “, or a meeting of contributories” were omitted; (b) after paragraph (3)(b), there were inserted “or”; (c) paragraph (3)(d), and the “or” preceding it, were omitted.

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140 Instrument conferring authorisation to represent corporation (rule 16.9)

Rule 16.9 has effect as if, in paragraph (1), “or contributories” were omitted.

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141 Reporting by the office-holder (rule 18.2)

Rule 18.2 has effect as if for that rule there were substituted— Reporting by the office-holder 18.2. The special administrator must prepare and deliver reports in accordance with this Chapter. .

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142 Contents of progress reports in administration, winding up and bankruptcy (rule 18.3)

Rule 18.3 has effect as if— (a) in paragraph (1)— (i) in the opening words, “in an administration, winding up and bankruptcy” were omitted; (ii) sub-paragraphs (b) and (f) were omitted; (iii) in sub-paragraph (g), for “rules 18.10 to 18.13 as applicable” there were substituted “rule 18.10”; (b) paragraphs (5) and (6) were omitted.

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143 Progress reports in administration: timing (rule 18.6)

Rule 18.6 has effect as if, in paragraph (4), “unless the report is a final progress report under rule 3.55” were omitted.

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144 Administration, creditors’ voluntary liquidation and compulsory winding up: reporting distribution of property to creditors under rule 14.13 (rule 18.10)

Rule 18.10 has effect as if— (a) in paragraph (1), “in an administration, creditors’ voluntary liquidation or compulsory winding up” were omitted; (b) for paragraph (3) there were substituted— (3) Paragraph (2) applies to the following— (a) rule 3.63 (administrator’s intention to resign); and (b) rule 18.3 (contents of progress report). .

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145 Remuneration principles (rule 18.16)

Rule 18.16 has effect as if for that rule there were substituted— Remuneration: principles 18.16. (1) A special administrator is entitled to receive remuneration for services as special administrator. (2) The basis of such remuneration is to be fixed by reference to the time properly spent by the special administrator and the special administrator’s staff in attending to matters arising in the special administration. .

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146 Remuneration of joint office-holders (rule 18.17)

Rule 18.17 has effect as if paragraph (a) were omitted.

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147 Remuneration: application to the court to fix the basis (rule 18.23)

Rule 18.23 has effect as if for that rule there were substituted— Remuneration: application to the court to fix the basis 18.23. (1) The special administrator’s remuneration must, on the special administrator’s application, be fixed by the court. (2) The special administrator must give at least 14 days’ notice of the application made under paragraph (1) to the following, who may appear or be represented— (a) the relevant authority; (b) the Water Services Regulation Authority; and (c) the creditors of the company. (3) In fixing the remuneration, the court must have regard to the following matters— (a) the complexity (or otherwise) of the case; (b) any respects in which, in connection with a company’s affairs, there falls on the special administrator any responsibility of an exceptional kind or degree; (c) the effectiveness with which the special administrator appears to be carrying out, or to have carried out, the special administrator’s duties; and (d) the value and nature of the property with which the special administrator has had to deal. .

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148 Remuneration: new administrator, liquidator or trustee (rule 18.31)

Rule 18.31 has effect as if for that rule there were substituted— Remuneration: new administrator, liquidator or trustee 18.31. (1) If a new special administrator is appointed in place of a special administrator, any court order in effect under rule 18.23 (remuneration: application to the court to fix the basis) immediately before the former special administrator ceased to hold office continues to apply in respect of the remuneration of the new special administrator until a further court order is made in accordance with those provisions. (2) Where a special administrator has ceased to act as such for any reason, the special administrator (or the special administrator’s estate, as the case may be) is to be entitled to any amounts outstanding on the basis of the services which that special administrator provided in accordance with Rule 18.23. .

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149 First excepted case (rule 22.4)

Rule 22.4 has effect as if— (a) paragraph (1)(b)(i) were omitted; (b) in paragraph (1)(b)(ii), “acting in relation to it as administrator, administrative receiver or supervisor of a CVA” were omitted; (c) for paragraph (3)(c) there were substituted— (c) where the company is in special administration, must contain— (i) the date that the company entered special administration, and (ii) a statement that the person was a director of the company on that date. ; (d) paragraph (3)(d) were omitted; (e) in sub-paragraph (4)(a), “, administrative receiver” to “other company)” were omitted.

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SCHEDULE Application of the 2016 Rules for the purposes of these Rules

Rule 5(1)(a) Rules | Description 6 | Introductory rules: punishment of offences 1.2 to 1.3 | Interpretation 1.4 to 1.6, 1.8 to 1.9 | Form and content of documents 1.10 to 1.12, 1.14 | Standard contents of Gazette notices and the Gazette as evidence etc. 1.15 to 1.16, 1.18 | Standard contents of notices advertised otherwise than in the Gazette 1.19 to 1.27 | Standard contents of documents to be delivered to the registrar of companies 1.28 to 1.34 | Standard contents of notices for delivery to other persons etc. 1.35 | Applications to the court 1.36 to 1.53 | Delivery of documents and opting out (sections 246C and 248A) 1.54 to 1.58 | Inspection of documents, copies and provision of information 3.1 to 3.2 | Interpretation 3.3, 3.6 to 3.9, 3.12 to 3.13, 3.15 | Appointment of administrator by court 3.27 | Notice of administrator’s appointment 3.28 to 3.34 | Statement of affairs 3.35 to 3.37, 3.42 | Administrator’s proposals 3.44 to 3.48 | Limited disclosure of statements of affairs and proposals 3.49 | Disposal of charged property 3.50 to 3.52 | Expenses of the administration 3.53, 3.57, 3.59 to 3.61 | Ending of administration 3.62 to 3.70 | Replacing the administrator 12.1 to 12.2 | Court procedure and practice: general 12.6 to 12.13 | Making applications to court: general 12.14 to 12.26 | Making applications to court: specific applications 12.27 to 12.29 | Obtaining information and evidence 12.30 to 12.31, 12.33 | Transfer of proceedings 12.39 to 12.40 | The court file 12.41 to 12.43, 12.46 to 12.50 | Costs 12.51 to 12.53, 12.55 | Enforcement procedures 12.58 to 12.59, 12.61 | Appeals 12.63 to 12.65 | Court orders, formal defects and shorthand writers 14.1 | Claims by and distributions to creditors: application and interpretation 14.2 to 14.24 | Creditors’ claims in administration 14.26, 14.28 to 14.35, 14.37 to 14.45 | Distribution to creditors in administration 15.1 | Decision making: application of Part 15.2 to 15.7 | Decision procedures 15.8 to 15.15 | Notices, voting and venues for decisions 15.20 to 15.22 | Constitution of meetings 15.23, 15.25 to 15.27 | Adjournment and suspension of meetings 15.28, 15.31 to 15.35 | Creditors’ voting rights and majorities 15.36 to 15.38 | Exclusions from meetings 15.40 | Records 15.41 to 15.46 | Company meetings 16.1 to 16.7, 16.9 | Proxies and corporate representation 18.2 to 18.3, 18.5 to 18.6, 18.10 | Reporting by, and remuneration of, office-holders: progress reports 18.16 to 18.17, 18.23, 18.31 | Remuneration and expenses in administration 22.4 to 22.5 | Permission to act as director etc. of company with a prohibited name (section 216)

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