The following Restructuring & Insolvency Q&A produced in partnership with Ryan Hocking of Gatehouse Chambers provides comprehensive and up to date legal information covering:
The procedure for a scheme of arrangement is set out in the Companies Act 2006 (CA 2006), and so is not subject to the amendments of the Insolvency Act 1986 which were made by the Small Business, Enterprise and Employment Act 2015 which made physical meetings the exception, rather than the rule. As such, the provisions of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 which relate to decision making procedures by creditors or members of a company have no application in relation to schemes of arrangement.
CA 2006, Pt 26 sets out a three stage process for schemes of arrangement:
first, there must be an application to the court to summon a meeting
secondly, documentation must be provided to those entitled to attend the meeting and the meeting itself must be held
thirdly, an application must be made to the court to sanction the scheme (with the scheme taking effect when the court’s sanction is given)
There are no specific requirements in relation to the form or procedure for meetings in CA 2006, Pt 26, and the general rule of meetings applies. Unlike the regime under IR 2016, SI 2016/1024, there are no detailed provisions setting out the appropriate procedure for virtual
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
Coronavirus (COVID-19): This Practice Note contains guidance on subjects potentially impacted by the government’s response to the COVID-19 outbreak. For updates on key developments and related practical guidance on the implications for lawyers, see Practice Note: Coronavirus (COVID-19)—implications
Pension commencement lump sums (PCLSs)When a member of a pension scheme becomes entitled to receive their scheme benefits, they can usually take part as a tax-free lump sum. HMRC calls this a ‘pension commencement lump sum’ (PCLS). Taking a lump sum is usually at the option of the member who will
AffrayAffray is an offence created by the Public Order Act 1986 (POA 1986). It can be tried in either the magistrates’ court or the Crown Court. The magistrates’ court may decline jurisdiction where for example in cases involving a weapon/throwing objects, or conduct that causes serious
Qualified one-way costs shifting (QOCS)What is QOCS?Qualified one-way costs shifting (QOCS) was introduced on 1 April 2013 as part of the Jackson costs reforms following the removal of a claimant’s right to recover additional liabilities from the defendant, ie success fees and after the event (ATE)
0330 161 1234