Non-compliant scheme of arrangement saved

11 JANUARY 2021

| 1 min read

The failure to include the statement of the directors’ interests with notice of the meeting to approve a Scheme of Arrangement amounting to statutory non-compliance was rectified, resulting in approval of the scheme by the court.

The court had previously refused to convene meetings of creditors to consider a Scheme of Arrangement due to a failure to disclose material interests of the directors of the company and the effect of those interests on the arrangement if it differs to the interests of others in addition to other deficiencies in the information provided by the Company as part of the scheme process.

Having attempted to rectify those deficiencies, the Court was prepared to sanction the convening of a single meeting of creditors.

In the matter of Sunbird Business Services Limited [2020] EWHC 2860 (Ch)

Our content explained

Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.

Non-compliant scheme of arrangement saved

Our content explained

Further reading

In-house in Focus: Getting Ready for the Procurement Act 2023

Visitors

Existing clients

Staff