Section 60 - Compromise, or arrangement of limited liability partnerships

Compromise or arrangement: tribunal sanctioned schemes bind all creditors or partners once disclosure and filing requirements are met.

Compromise or arrangement procedures permit an LLP to seek the Tribunal's direction to convene creditor or partner meetings; if three fourths in value of those classes agree and the Tribunal sanctions the scheme after being satisfied that all material facts including the LLP's financial position and pending investigations have been disclosed, the sanctioned compromise becomes binding on all creditors or partners and on the LLP, subject to filing the Tribunal's order with the Registrar within thirty days and applicable penalties for default; the Tribunal may stay proceedings against the LLP while the application is pending.