Arrange Company Deed For Free

Key steps in a scheme of arrangementInitial Approach.Due Diligence.Scheme implementation agreement.Shareholder disclosure and approval process.Court approval and implementation.

The voluntary administrator will propose a DOCA to the company's creditors at a meeting of creditors. A DOCA must be approved by both: 50% in number of creditors; and. 50% by value of the total amount owed to creditors.

Schemes of arrangement are used to execute arbitrary changes in the structure of a business and thus are used when a reorganisation cannot be achieved by other means. They may be used for rescheduling debt, for takeovers, and for returns of capital, among other purposes.

The DOCA will terminate according to the terms of the DOCA. Usually, this is when the company makes a final payment to its creditors under the terms of the DOCA. Once the DOCA terminates, the company can continue as a solvent company and its period of administration is over.

During the second or 'watershed' meeting, creditors vote on the future of the company. This meeting is usually held within 25 working days of the appointment of administrator. Company directors are required to be at this meeting, unless they are excused.

As long as the scheme of arrangement progresses in an uncomplicated fashion, the process could be completed within six to eight weeks of the company making its first application to the English courts. Negotiations involving the commercial terms of the scheme itself lengthen the timetable.

After the meeting, the administrator will usually go away and draft the formal documents, which will then be executed by the directors and the administrator. The DOCA ultimately executed should, under s 439C, be in terms of the deed specified in the resolution that was approved at the creditors meeting.