Seventh Schedule

[Sections 394 and 401]

POWERS AND DUTIES OF NOMINEE FOR CORPORATE VOLUNTARY ARRANGEMENT

1. During a moratorium, a nominee shall monitor the company’s affairs for the purpose of forming an opinion as to whether—

(a) the proposed voluntary arrangement has a reasonable prospect of being approved and implemented; and

(b) thecompanyislikelytohavesufficientfundsavailableforthecompany during the proposed moratorium to enable the company to carry on its business.

2. The nominee may request from the directors or Official Receiver and the directors or Official Receiver shall submit to the nominee, any information necessary to enable the nominee to comply with paragraph

3. The nominee is entitled to rely on information submitted to him under paragraph 2 in forming his opinion on matters required under paragraph 1 unless he has reason to doubt its accuracy.

4. The reference in subparagraph 1(b) to the company’s business is to that business as the company proposes to carry on during the moratorium.

5. The nominee shall withdraw his consent to act if, at any time during a moratorium—

(a) he forms the opinion that—

(i) the proposed voluntary arrangement no longer has a reasonable prospect of being approved or implemented; or

(ii) the company will not have sufficient funds available for the company during the remainder of the moratorium to enable the company to carry on its business;

(b) he becomes aware that, on the date of filing of documents under section 398, the company was not eligible for a moratorium; or

(c) the directors or Official Receiver fail to comply with their duty under paragraph 2.