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Scheme of arrangement
Practical Law ANZ Glossary w-022-3663 (Approx. 2 pages)
Glossary
Scheme of arrangement
Includes a reorganisation of the share capital of a company by:
- The consolidation of shares of different classes.
- The division of shares into shares of different classes.
- Both of the above methods.
The term "arrangement" has been given a broad meaning by the courts and has been held to include "any scheme that can in the ordinary use of language be regarded as an arrangement between a company and its members or any class of them" (Re Milne and Choyce Ltd [1953] NZLR 724 at page 746).
There is a two-stage process for obtaining court approval of a scheme of arrangement (section 236, CA 1993).
For more information on schemes of arrangement, see Practice note, Arrangements, amalgamations and compromises by court order under Part 15 of the Companies Act 1993.