Section 230 - Power to compromise or make arrangements with creditors and members

Compromise or arrangement proposals: Tribunal-sanctioned meetings, voting thresholds and binding effects on company stakeholders and disclosure requirements.

The Tribunal may order meetings and supervise schemes of compromise or arrangement between a company and its creditors or members; applicants must disclose material facts, financials, valuation and auditor certifications, notify stakeholders and regulators, and secure approval by a majority in number representing three-fourths in value of votes cast for the scheme to bind all relevant parties; the Tribunal may dispense with meetings where creditors representing ninety per cent consent, and orders can address share conversions, creditor protections, variation of rights, exit offers, and require auditor certification of accounting treatment.