| Commentary

37 Nature of voluntary arrangements

| Commentary

37 Nature of voluntary arrangements

Whatever procedure is adopted, an individual voluntary arrangement must be either a composition with creditors or a scheme of arrangement or, as is frequently the case, a combination of the two1.

  1. 37.1

        Composition: A composition is an agreement between the debtor and his creditors whereby the creditors agree with the debtor and among themselves to accept from the debtor payment of less than the respective amounts due to them in full satisfaction of the whole of their claim2.

  2. 37.2

        Scheme of arrangement: A scheme of arrangement may take any form acceptable to the parties. The

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial