Compromises, Amalgamations and Schemes of Arrangement
This is a procedure under Part 15 of the Companies Act 1993 that involves the High Court approving an arrangement
or amalgamation or compromise on such terms and conditions as the Court sees fit, and to order that the arrangement
be binding on "such other persons or classes of persons as the Court may specify".
Part 15 of the Act enables the Court on the application of the company, a creditor, or a shareholder, to order that an arrangement,
amalgamation, or compromise, shall be binding upon the company, and any other persons that the Court thinks fit.
It has wider scope than Part 14 in that while the latter is limited to compromises with creditors,
Part 15 permits arrangements and amalgamations to be imposed.
The Court has wide powers to deal with schemes of arrangement and take a fair and sensible appreciation commercial considerations.
The nature of the procedures required under Part 15 are such that cost is a consideration and therefore it is probably not an option for
small business and depending on the circumstances may not be a practical option for a medium sized business however that does not prevent
an Informal Arrangement or Voluntary Administration procedure being used.