Scheme of arrangement


Scheme of arrangement

Schemes of arrangement (or a "scheme of reconstruction") is a court-approved agreement between a company and its shareholders or creditors (e.g. lenders or debenture holders). It may effect mergers and amalgamations and may alter shareholder or creditor rights.

Schemes of arrangement are used to execute arbitrary changes in the structure of a business and thus are used when a reorganisation cannot be achieved by other means. They may be used for rescheduling debt, for takeovers, and for returns of capital, among other purposes.

In the United Kingdom, the relevant provisions for effecting a scheme of arrangement are found in Companies Act 2006, Parts 26 (ss.895-901) and Part 27 (special rules for public companies)

ee also

*Reconstruction (law)
*Takeover
*Mergers and acquisitions

External links

* [http://moneyterms.co.uk/scheme-of-arrangement/ Scheme of arrangement - moneyterms.co.uk]


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