New Clause 342

Company Law Reform Bill [Lords] – in a Public Bill Committee at 1:45 pm on 20th July 2006.

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Scheme of this Part

‘(1) The provisions of this Part apply where a compromise or arrangement is proposed—

(a) between a company and its creditors, or any class of them, or

(b) between the company and its members, or any class of them.

(2) The provisions of sections (Court sanction for compromise or arrangement) to (Copy of court order to be annexed to copies of company’s constitution) (court sanction for compromise or arrangement) apply in every case.

(3) The provisions of section (Powers of court to facilitate reconstruction or amalgamation) (powers of court to facilitate reconstruction or amalgamation) supplement those provisions.

(4) The provisions mentioned above have effect subject to regulations under section (Power to make provision for mergers and divisions of public companies) (mergers and divisions of public companies) in the circumstances specified in that section.

(5) In this Part—

“arrangement” includes a reorganisation of the company’s share capital by the consolidation of shares of different classes or by the division of shares into shares of different classes, or by both of those methods; and

“company”—

(i) in sections (Powers of court to facilitate reconstruction or amalgamation), (Copy of order to be delivered to registrar) and (Power to make provision for mergers and divisions of public companies) means a company within the meaning of this Act, and

(j) elsewhere in this Part means any company liable to be wound up under the Insolvency Act 1986 (c. 45) or the Insolvency (Northern Ireland) Order 1989 (S.I.1989/2405(N.I.19)).’.—[Margaret Hodge.]

Brought up, and added to the Bill.