New Clause 347

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

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Court order sanctioning compromise or arrangement

‘(1) The court may sanction a compromise or arrangement only if, at a meeting summoned under section (Meeting of creditors or members), a majority in number representing 75% in value of the creditors or class of creditors or members or class of members (as the case may be), present and voting either in person or by proxy at the meeting, agree to the compromise or arrangement.

(2) A compromise or agreement sanctioned by the court is binding on—

(a) all creditors or the class of creditors or on the members or class of members (as the case may be), and

(b) the company or, in the case of a company in the course of being wound up, the liquidator and contributories of the company.

(3) The court’s order has no effect until a copy of it has been delivered to the registrar of companies for registration.’.—[Margaret Hodge.]

Brought up, and added to the Bill.