The English Scheme of Arrangement

This chapter examines the English scheme of arrangement, which is laid down in sections 895–99 of the Companies Act 2006. It gives an outline of the procedure and looks at past attempts to reform the procedure. As with Chapter 6, it then goes on to discuss the key features of the procedure, including the right to propose a plan, the commercial content of the plan, the voting in classes, and the acceptance and sanctioning of a scheme. The chapter also considers criticisms of the English system. These include the costs and formalities of the procedure, the lack of the necessary flanking measures, the requirements of ‘give’ or ‘take’, the lack of a cramdown mechanism and the exclusive right to propose a plan.