scheme of arrangement

scheme of arrangement
index configuration (form), method

Burton's Legal Thesaurus. . 2006


scheme of arrangement
scheme of arrangement, Also known as section 899 scheme.
A compromise or arrangement between a company and its members or creditors (or any class of them) under Part 26 of the Companies Act 2006. A company can effect almost any kind of internal reorganisation, merger or demerger restructuring under Part 26.
The scheme requires approval by a majority in number representing three-quarters in value of the members or creditors (or class of members or creditors, as relevant) who vote at the meeting convened by the court for the purpose of considering the scheme. It also requires court approval. If the scheme includes a reduction of capital, a separate special resolution (requiring a 75% majority of those voting) is also necessary.
Once approved by shareholders and sanctioned by the court, the arrangements are binding on all members or creditors (or class of members or creditors, as relevant) and the company.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Scheme of arrangement — Schemes of arrangement (or a scheme of reconstruction ) is a court approved agreement between a company and its shareholders or creditors (e.g. lenders or debenture holders). It may effect mergers and amalgamations and may alter shareholder or… …   Wikipedia

  • scheme of arrangement — Restructuring of share capital involving the issuance of new securities and/or cash. Euroclear Clearing and Settlement glossary A non optional event proposed by a company on its share capital. London Stock Exchange Glossary * * * scheme of… …   Financial and business terms

  • scheme of arrangement — A compromise agreement made between a company and its shareholders or creditors as an alternative to bankruptcy. This is usually achieved by applying the assets and income of the debtor in proportionate payments to the creditors. This is… …   Accounting dictionary

  • scheme of arrangement — /ˌski:m əv ə reɪndʒmənt/ noun a scheme drawn up by an individual or company to offer ways of paying debts, so as to avoid bankruptcy proceedings. Also called voluntary arrangement …   Dictionary of banking and finance

  • scheme of arrangement — See arrangement …   Big dictionary of business and management

  • scheme of arrangement — Restructuring of share capital involving the issuance of new securities and/or cash …   Euroclear glossary

  • arrangement — UK US /əˈreɪndʒmənt/ noun ► [C, usually plural] a plan or preparation for how something will happen: make an arrangement »There wasn t enough time for him to make alternative arrangements. arrangement (for sb) to do sth »Some people have very… …   Financial and business terms

  • arrangement — 1) A method of enabling a debtor to enter into an agreement with any creditors (either privately or through the courts) to discharge his or her debts by partial payment, as an alternative to bankruptcy. This is generally achieved by a scheme of… …   Big dictionary of business and management

  • arrangement — Synonyms and related words: Nachtmusik, abatement of differences, absolute music, accommodation, accord, adaptation, adjunct, adjustment, adornment, affair, agreement, air varie, aleatory, aleatory music, alignment, analysis, anatomy, appointment …   Moby Thesaurus

  • scheme — Synonyms and related words: Byzantine intrigues, action, anagnorisis, angle, approach, architectonics, architecture, argument, arrangement, art, artful dodge, artifice, atmosphere, attack, background, backstairs influence, bag of tricks, blind,… …   Moby Thesaurus

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”