414Requirements for binding compromise or arrangement

414 Requirements for binding compromise or arrangement

414 Requirements for binding compromise or arrangement

(1) A compromise or arrangement is binding only if it is approved by order of the Supreme Court and it is agreed to—

(a) if the compromise or arrangement is between the co-operative and any of its creditors—at a court ordered meeting by a majority in number of the creditors concerned who are present and voting (in person or by proxy), being a majority whose debts or claims against the co-operative amount to at least 75% of the total of the debts and claims of all creditors who are present and voting (in person or by proxy); or

(b) if the compromise or arrangement is between the co-operative and any of its members—by the members concerned, by special resolution passed by a special postal ballot.

(2) The court ordered meeting referred to in subsection (1) (a) is a meeting called in accordance with an order of the Supreme Court under this Part.

(3) The Supreme Court may give its approval to a compromise or arrangement subject to the amendments or conditions it considers appropriate.

(4) An order of the Supreme Court approving a compromise or arrangement does not have effect until an office copy of the order is filed with the Registrar.

(5) On the copy being filed, the order takes effect from the date of filing or the earlier date the Supreme Court states in the order.