Schemes Of Arrangement Procedural Memorandum

The Scheme

Under Sections 86 and 87 of the Companies Law (2007 Revision) an application to the Court can be made for the sanctioning of a compromise or arrangement between a company and its creditors and/or members or any class of them. This memorandum sets out the procedural steps required to be undertaken to obtain the Court's sanction of the proposed Scheme.

The parties draft the Scheme document.

Petition

The Applicant (usually the company or, if the company is in liquidation, the liquidator) issues a petition at Court commencing the court proceeding and seeking sanction of the Scheme.

The Court will allocate a date for the hearing of the petition. The date will usually be eight to twelve weeks (depending on the case) from the filing of the petition.