CORPORATIONS — arrangements and reconstructions — schemes of arrangement or compromise — application under s 411 of the Corporations Act 2001 (Cth) for orders convening meeting of member to consider and, if thought fit, to agree to proposed scheme of arrangement to implement corporate restructuring — whether requirements to order scheme meeting are satisfied
Quick Take
1An internal corporate reconstruction involving partial transfer of assets and liabilities under s 413 of the Corporations Act may be facilitated by a members' scheme between the transferring entity and its sole shareholder, with creditor protection addressed at the second court hearing.
2A transfer of contracts effected by court order under s 413(2) operates by force of law and overrides contractual restrictions on assignment, though affected counterparties may oppose approval at the second court hearing.
