211I. Power of Court to approve compromise or arrangement without meeting of creditors

Question 1

211I. Power of Court to approve compromise or arrangement without meeting of creditors

Answer 1

General overview
[211I.01] Section 211I gives the court wide powers to approve a scheme of compromise or arrangement when the creditors’ or classes of creditors’ meeting have not been ordered under s 210(1) or held upon satisfaction of the conditions thereunder. A scheme of compromise or arrangement approved by the court under this section is binding on the company and its creditors or classes of creditors meant to be bound by the compromise or arrangement: s 211I(2). To take effect, such orders have to be lodge with the registrar and is effective from the date of the lodgment: s 211I(12).