PART 4 PART 4 DISTRIBUTIONS TO CREDITORS
29. Application of Part to particular class of creditors(1) Subject as follows, this Part 4 applies where the Office-holder makes, or proposes to make, a distribution to any class of creditors other than secured creditors.(2) Where in an administration, a distribution is to a particular class of creditors, a reference in this Part 4 to creditors is a reference to that class of creditors only.(3) The paragraphs in this Part 4 apply in relation to any distribution made in the Insolvency Proceedings to preferential creditors, with such adaptations as are appropriate considering that such creditors are of a limited class.
30. Intention to declare and distribute dividend(1) In an administration and in a winding-up, the Office-holder must deliver notice to the creditors of the Office-holder's intention to declare and distribute a dividend in accordance with paragraph 31 (Notice of intention to declare a dividend) of Part 4 (Distributions to creditors) of this Schedule.(2) In a winding-up, whenever the liquidator has sufficient funds in hand for the purpose the liquidator must, subject to the retention of such sums as may be necessary for the expenses of the winding-up, declare and distribute dividends among the creditors in respect of the debts which they have respectively proved.
31. Notice of intention to declare a dividend(1) Where an Office-holder intends to declare a dividend, the Office-holder must deliver a notice of that fact to all creditors who have not proved for their debts (subject to sub-paragraph (4)(a)).(2) Before declaring a dividend the Office-holder must by a notice invite the creditors to prove for their debts (unless the Office-holder has previously done so by a notice which has been published in the Abu Dhabi Global Market).(3) The notice —(a) must be published in the Abu Dhabi Global Market; and(b) may be advertised in such other manner (if any) as the Office-holder thinks fit.(4) Where a dividend is to be declared for preferential creditors —(a) a notice under sub-paragraph (1) need only be delivered to creditors whose debts the Office-holder has reason to believe are preferential; and(b) a notice under sub-paragraph (1) need only be delivered if the Office-holder thinks fit.
32. Content of notice(a) specify a date ("the last date for proving") by which proofs may be delivered which must be —(i) the same date for all creditors; and(ii) not less than 21 days from the date of notice;(b) state that it is the intention of the Office-holder to make a distribution to creditors within the period of two months from the last date for proving;(c) specify whether the proposed dividend is interim or final;(d) specify the place to which proofs must be delivered;(e) in the case of an administration, state that it is the intention of the administrator to make a distribution to creditors within the period of two months from the last date for proving;(f) in the case of a winding-up, state that it is the intention of the Office-holder to declare a dividend within a period of two months from the last date for proving; and(g) in the case of a members' voluntary winding-up, where the distribution is to be a sole or final distribution, state that the dividend may be distributed without regard to the claim of any person in respect of a debt not proved.
33. Postponement or cancellation of dividend(a) the Office-holder has rejected a proof in whole or in part and application is made to the Court for that decision to be reversed or varied; or(b) application is made to the Court for the Office-holder's decision on a proof to be reversed or varied, or for a proof to be excluded, or for a reduction of the amount claimed,
the Office-holder may postpone or cancel the dividend.
34. Admission or rejection of proofs(1) Unless the Office-holder has already dealt with them, the Office-holder must, within five (5) business days of the last date for proving —(a) admit or reject (in whole or in part) proofs delivered to the Office-holder; or(b) make such provision in relation to them as the Office-holder thinks fit.(2) The Office-holder is not obliged to deal with proofs delivered after the last date for proving, but the Office-holder may do so, if the Office-holder thinks fit.(3) In the declaration of a dividend no payment must be made more than once by virtue of the same debt.
35. Declaration of dividend(1) If the Office-holder has not had cause to postpone or cancel the dividend in the two month period referred to in paragraph 32(e) or (f) (Content of notice) of Part 4 (Distributions to creditors) of this Schedule, the Office-holder must within that period proceed to declare the dividend to one or more classes of creditors of which the Office-holder gave notice.(2) Except with the permission of the Court, the Office-holder must not declare a dividend so long as there is pending any application to the Court to reverse or vary a decision of the Office-holder on a proof, or to exclude a proof or to reduce the amount claimed.(3) If the Court gives permission under sub-paragraph (2), the Office-holder must make such provision in relation to the proof as the Court directs.
36. Notice of declaration of a dividend(1) Where the Office-holder declares a dividend the Office-holder must deliver notice of that fact to, subject to sub-paragraph (3), all creditors who have proved for their debts.(2) The notice must include the following particulars relating to the Insolvency Proceedings —(a) amounts raised from the sale of assets, indicating (so far as practicable) amounts raised by the sale of particular assets;(b) payments made by the Office-holder in carrying out the Office-holder's functions in relation to the Insolvency Proceedings;(c) provision (if any) made for unsettled claims, and funds (if any) retained for particular purposes;(d) the total amount to be distributed and the rate of dividend; and(e) whether, and if so when, any further dividend is expected to be declared.(3) Where the Office-holder declares a dividend for preferential creditors only, the notice pursuant to sub-paragraph (1) need only be delivered to those preferential creditors who have proved for their debts.
37. Payments of dividends and related matters(1) The dividend may be distributed simultaneously with the notice declaring it.(2) Payment of dividend may be made by post, or the Office-holder may, with the agreement of the creditor, arrange for it to be paid to the creditor by any other means or in any form, or held for the creditor's collection.(3) Where a dividend is paid on a bill of exchange or other negotiable instrument, the amount of the dividend must be endorsed on the instrument, or on a certified copy of it, if required to be produced by the holder for that purpose.
38. Notice of no dividend, or no further dividend
If the Office-holder delivers notice to creditors that the Office-holder is unable to declare any dividend or (as the case may be) any further dividend, the notice must contain a statement to the effect either —(a) that no funds have been realised; or(b) that the funds realised have already been distributed or used or allocated for defraying the expenses of the Insolvency Proceedings.
39. Where sole or final dividend(1) When the liquidator in a winding-up has realised all the Company's assets or so much of them as can, in the liquidator's opinion, be realised without needlessly prolonging the winding-up, the liquidator must deliver notice as provided for in this Part, either —(a) of the intention to declare a final dividend; or(b) that no dividend, or further dividend, will be declared.(2) The notice must contain all such particulars as are required by this Part and must require claims against the assets to be established by a date set out in the notice.(3) Where, in an administration or winding-up, it is intended that the distribution is to be a sole or final dividend, after the date specified as the last date for proving in the notice under paragraph 31 (Notice of intention to declare a dividend) of Part 4 (Distributions to creditors) of this Schedule, the Office-holder —(a) in a winding-up, must defray any outstanding expenses of the winding-up out of the assets;(b) in an administration, must —(i) pay any outstanding expenses of a winding-up (including any of the items mentioned in Section 226 (General rule as to priority of expenses) of these Regulations) or provisional winding-up that immediately preceded the administration;(ii) pay any items payable in accordance with the provisions of Section 143 (Vacation of office: charges and liabilities) of these Regulations;(iii) pay any amounts (including any debts or liabilities and the administrator's own remuneration and expenses) which would, if the administrator were to cease to be the administrator of the Company, be payable out of the property of which the administrator had custody or control in accordance with the provisions of Section 143 (Vacation of office: charges and liabilities) of these Regulations; and(c) in a members' voluntary winding-up may, and in every other case must, declare and distribute that dividend without regard to the claim of any person in respect of a debt not already proved.(4) The Court may, on the application of any person, postpone the date specified in the notice.
40. Administration and winding-up: provisions as to dividends
In an administration or winding-up, in the calculation and distribution of a dividend the Office-holder must make provision for —(a) any debts which appear to the Office-holder to be due to persons who, by reason of the distance of their place of residence, may not have had sufficient time to deliver their proofs;(b) any debts which are the subject of claims which have not yet been determined; and(c) disputed proofs and claims.
41. Administration and winding-up: non-payment of dividend
In an administration or winding-up, no action lies against the Office-holder for a dividend; but if the Office-holder refuses to pay a dividend the Court may, if it thinks just, order the Officeholder to pay it and also to pay, out of the Office-holder's own money —(a) interest on the dividend, at the official interest rate, from the time when it was withheld; and(b) the costs of the proceedings in which the order to pay is made.
42. Supplementary provisions as to dividends(1) A creditor is not entitled to disturb the payment of any dividend or making of any distribution because —(a) the amount claimed in the creditor's proof is increased after payment of the dividend or making of the distribution;(b) in an administration or creditors' voluntary winding-up or compulsory winding-up the creditor did not prove for a debt before the declaration of the dividend; or(c) in a members' voluntary winding-up, the creditor did not prove for a debt before the last date for proving or increases the claim in proof after that date.(2) However the creditor is entitled to be paid or receive, out of any money for the time being available for the payment of any further dividend or making of any further distribution, any dividend or distribution which he has failed to receive.(3) Any dividend or dividends payable under this paragraph must be paid or distribution made before that money is applied to the payment of any further dividend or making of any further distribution.(4) If, after a creditor's proof has been admitted, the proof is withdrawn or excluded, or the amount of it is reduced, the creditor is liable to repay to the Office-holder, for the credit of the Insolvency Proceedings, any amount overpaid by way of dividend.
43. Secured creditors(1) The following applies where a creditor alters the value of a security after a dividend has been declared.(2) If the alteration reduces the creditor's unsecured claim ranking for dividend, the creditor must as soon as reasonably practicable repay to the Office-holder, for the credit of the administration or the insolvent estate, any amount received by the creditor as dividend in excess of that to which the creditor would be entitled, having regard to the alteration of the value of the security.(3) If the alteration increases the creditor's unsecured claim, the creditor is entitled to receive from the Office-holder, out of any money for the time being available for the payment of a further dividend, before any such further dividend is paid, any dividend or dividends which the creditor has failed to receive, having regard to the alteration of the value of the security.(4) However, the creditor is not entitled to disturb any dividend declared (whether or not distributed) before the date of the alteration.
44. Disqualification from dividend
If a creditor contravenes any provision of these Regulations relating to the valuation of securities, the Court may, on the application of the Office-holder, order that the creditor be wholly or partly disqualified from participation in any dividend.
45. Assignment of right to dividend(1) If a person entitled to a dividend ("the entitled person") delivers notice to the Office-holder that the entitled person wishes the dividend to be paid to another person, or that the entitled person has assigned the entitlement to another person, the Office-holder must pay the dividend to that other person accordingly.(2) A notice delivered under this paragraph must specify the name and address of the person to whom payment is to be made.
46. Debt payable at future time(1) Where a creditor has proved for a debt of which payment is not due at the date of the declaration of dividend, the creditor is entitled to dividend equally with other creditors, but subject as follows.(2) For the purpose of dividend (and no other purpose) the amount of the creditor's admitted proof (or, if a distribution has previously been made to the creditor, the amount remaining outstanding in respect of the creditor's admitted proof) must be reduced by applying the following formula —
"X" is the value of the admitted proof; and
"n" is the period beginning with the relevant date and ending with the date on which the payment of the creditor's debt would otherwise be due, expressed in years (part of a year being expressed as a decimal fraction of a year).
47. Power to exclude creditors not proving in time
The Court may fix a time or times within which creditors are to prove their debts or claims or else to be excluded from the benefit of any distribution made before those debts are proved provided that the Court is satisfied that all necessary steps have been taken to bring the Insolvency Proceedings to the attention of creditors.