COMPANIES ACT (NORTHERN IRELAND) 1960

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 197



197.(1) Where a compromise or arrangement is proposed between a company and
its creditors or any class of them or between the company and its members or
any class of them, the court may, on the application in a summary way of
the company or of any creditor or member of the company, or, in the case of a
company being wound up, of the liquidator, order a meeting of the creditors or
class of creditors, or of the members of the company or class of members, as
the case may be, to be summoned in such manner as the court directs.

(2) If a majority in number representing three-fourths in value of the
creditors or class of creditors or members or class of members, as the case
may be, present and voting either in person or by proxy at the meeting, agree
to any compromise or arrangement, the compromise or arrangement shall, if
sanctioned by the court, be binding on all the creditors or the class of
creditors, or on the members or class of members, as the case may be, and also
on the company or, in the case of a company in the course of being wound up,
on the liquidator and contributories of the company.

(3) An order made under sub-section (2) shall have no effect until an office
copy of the order has been delivered to the registrar of companies for
registration, and a copy of every such order shall be annexed to every copy of
the memorandum of the company issued after the order has been made, or, in the
case of a company not having a memorandum, of every copy so issued of the
instrument constituting or defining the constitution of the company.

(4) If a company fails to comply with sub-section (3), the company and every
officer of the company who is in default shall be liable to a fine not
exceeding one pound for each copy in respect of which default is made.

(5) In this section and in section one hundred and ninety-eight "company"
means any company liable to be wound up under this Act, and "arrangement"
includes a re-organisation of the share capital of the company by the
consolidation of shares of different classes or by the division of shares into
shares of different classes or by both those methods.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 197