Section 262: Approval of arrangements, amalgamations and compromises

262. Approval of arrangements, amalgamations and compromises (1) Notwithstanding the provisions of this Act or the constitution of a company, the Court may, on the application of a company or, with the leave of the Court, any shareholder or creditor of a company, order that an arrangement or amalgamation or compromise shall be binding on the company and on such other persons or classes of persons as the Court may specify and any such order may be made on such terms and conditions as the Court thinks fit. (2) Before making an order under subsection (1), the Court may, on the application of the company or any shareholder or creditor or other person who appears to the Court to be interested, or of its own motion, make any one or more of the orders specified in subsection (3). (3) The orders under subsection (2) shall be— (a) an order that notice of the application, together with such information relating to it as the Court thinks fit, be given in such form and in such manner and to such persons or classes of persons as the Court may specify; (b) an order directing the holding of a meeting or meetings of shareholders or any class of shareholders or creditors or any class of creditors of a company to consider and, if thought fit, to approve, in such manner as the Court may specify, the proposed arrangement or amalgamation or compromise and, for that purpose, may determine the shareholders or creditors that constitute a class of shareholders or creditors of a company; (c) an order requiring that a report on the proposed arrangement or amalgamation or compromise be prepared for the Court by a person specified by the Court and, if the Court thinks fit, be supplied to the shareholders or any class of shareholders or creditors or any class of creditors of a company or to any other person who appears to the Court to be interested; (d) an order as to the payment of the costs incurred in the preparation of any such report; (e) an order specifying the persons who shall be entitled to appear and be heard on the application to approve the arrangement or amalgamation or compromise. (4) An order made under this section shall have effect on and from the date specified in the order. (5) The Board of the company shall, within 14 days of an order made by the Court, ensure that a copy of the order is filed with the Registrar for registration.