Companies Act 2014 section 453

Circumstances in which compromise or arrangement becomes binding on creditors or members concerned

Section 453 sets out the conditions that must be met for a scheme of arrangement or compromise to become legally binding on the creditors, members, and the company itself.

• A special majority must vote in favour of the scheme at every scheme meeting held
• Notice of the resolution and the intended court application must be advertised in at least two daily newspapers circulating in the district of the company's registered office or principal place of business
• The court must formally sanction the compromise or arrangement before it takes effect
• State authorities, including Revenue, may accept scheme proposals even where their claims as creditors would be reduced