309. Arrangement when binding on creditors Flashcards
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- Arrangement when binding on creditors
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General overview
[309.01] Any arrangement entered into between a company about to be or in the course of being wound up and its creditors shall, subject to the right to appeal under s 309, be binding on the company if sanctioned by a special resolution to which 75% in value and 50% in number of creditors acceded to. Section 309 applies after the commencement of the winding up, whether by the court or voluntarily. Note: a s 210 arrangement with creditors, if any, should be proceeded with before the commencement of winding up proceedings. For a case on the liquidators applying to court to sanction a scheme of arrangement under this section
