Scheme of Arrangement in UK Law

Leading Cases
  • Re Hawk Insurance Company Ltd
    • Court of Appeal (Civil Division)
    • 23 Feb 2001

    In each case the answer to that question will depend upon analysis (i) of the rights which are to be released or varied under the scheme and (ii) of the new rights (if any) which the scheme gives, by way of compromise or arrangement, to those whose rights are to be released or varied.

  • Re Lehman Brothers International (Europe), Lomas v Rab Market Cycles (Master) Fund Ltd)
    • Court of Appeal (Civil Division)
    • 06 Nov 2009

    It seems to me that an arrangement between a company and its creditors must mean an arrangement which deals with their rights inter se as debtor and creditor. That formulation does not prevent the inclusion in the Scheme of the release of contractual rights or rights of action against related third parties necessary in order to give effect to the arrangement proposed for the disposition of the debts and liabilities of the company to its own creditors.

  • SISU Capital Fund Ltd v Tucker
    • Chancery Division
    • 09 Sep 2005

    There is, in any case, a material difference between the two processes. In relation to a scheme of arrangement, there needs to be approval from each voting class. Accordingly, a separate class can block a scheme of which it does not approve even though the overall scheme may fall within the range of reasonable proposals which that class could adopt without unfairness to any particular member of that class. In contrast, a CVA is determined by a single vote of all creditors.

  • HIH Casualty and General Insurance Ltd, Re; McGrath and Others v Riddell and Another
    • Chancery Division
    • 07 Oct 2005

    I therefore conclude that there is a significant prospect that, in the absence of schemes of arrangement, winding-up orders would be made. A principal function of provisional liquidators at this stage is to safeguard the assets of the Companies for the benefit of those interested in their distribution in the event of a winding-up. Its effect would be to undermine the proper working-out of the statutory insolvency scheme which would be mandatory if winding-up orders were made.

  • Re T & N Ltd and Others (No 3)
    • Chancery Division
    • 16 Jun 2006

    The settlement of the litigation is therefore in substance and form a tripartite matter, involving T&N, insurers and claimants. That is reflected in the proposed scheme, with T&N and the claimants as parties and with the EL Insurers appearing before the court to consent to the scheme and to undertake to be bound by its terms. It is true that the scheme has no effect on the present rights of EL Claimants against T&N.

    Nor is an arrangement necessarily outside the section, because its effect is to alter the rights of creditors against another party or because such alteration could be achieved by a scheme of arrangement with that other party.

  • Cambridge Gas Transport Corporation v Official Committee of Unsecured Creditors of Navigator Holdings Plc and Others
    • Privy Council
    • 16 May 2006

    But as between the shareholder and the company itself, the shareholder's rights may be varied or extinguished by the mechanisms provided by the articles of association or the Companies Act. One of those mechanisms is the scheme of arrangement under section 152. As a shareholder, Cambridge is bound by the transactions into which the company has entered, including a plan under Chapter 11 or a scheme under section 152.

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Legislation
  • Railway Companies Act 1867
    • UK Non-devolved
    • January 01, 1867
    ......Arrangements. . Arrangements. . S-6 . Preparation and filing of Scheme of ......
  • Bankruptcy Act 1890
    • UK Non-devolved
    • January 01, 1890
    ...... S-3 . Compositions and schemes of arrangement. 3 Compositions and schemes of arrangement. . (1) ......
  • Insolvency Act 1986
    • UK Non-devolved
    • January 01, 1986
    ......The First Group of Parts. I . Company Voluntary Arrangements Part I . Company Voluntary Arrangements . The proposal . S-1 . Those ...its creditors for a composition in satisfaction of its debts or a. scheme of arrangement of its affairs (from here on referred to, in. either case, ......
  • Bankruptcy Act 1914
    • UK Non-devolved
    • January 01, 1914
    ......partners, or an agent or manager,. . . nor, where a deed of arrangement has been executed, shall a. creditor be entitled to present a bankruptcy ...or scheme of arrangement shall be accepted, or whether it is. expedient that the ......
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Books & Journal Articles
  • Protection of Minorities Against Oppression Under Section 206 of the Companies Act, 1948
    • Nbr. 21-6, November 1958
    • The Modern Law Review
    ...... Act, 1948, provides that, where a compromise or arrangement is proposed between a company and its creditors and/or ... necessity of obtaining the court’s sanction to any scheme brought under the section, and the court will withhold its ......
  • Statutes
    • Nbr. 5-2, November 1941
    • The Modern Law Review
    ...... in enabling him to arrive at an equitable and reasonable scheme of arrangement with his creditors, and, in particular, a scheme ......
  • Corporate Mobility and Company Law
    • Nbr. 79-5, September 2016
    • The Modern Law Review
    Globalisation has given commercial parties more freedom to choose the company law system that best suits their private needs. The growing range of techniques to facilitate choice between systems of...
    ......9 Another possibility is the ‘holdco scheme of arrangement’, a court-supervised statutor y process that enables a ......
  • Century National Merchant Bank Limited and Others v Davies and Others
    • Nbr. 6-3, March 1998
    • Journal of Financial Regulation and Compliance
    • 278-285
    This appeal to the Privy Council from the Court of Appeal of Jamaica concerned the lawfulness of action taken by the Minister of Finance on 10th July, 1996 under statutory powers to assume temporar...
    ...... Sectio n 19 2 (compromis e o r arrangement ) an d s.19 4 (reconstruction ) ar e i n familia r terms. ' Lor d ... Thi s i s a perfectl y practica l an d sensibl e statutor y scheme . I t enable s th e Temporar y Manage r durin g th e temporar y ......
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Law Firm Commentaries
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