Part 14 Compromises with creditors

227 Interpretation

In this Part, unless the context otherwise requires,—

company includes an overseas company registered under Part 18

compromise means a compromise between a company and its creditors, including a compromise—

(a)

cancelling all or part of a debt of the company; or

(b)

varying the rights of its creditors or the terms of a debt; or

(c)

relating to an alteration of a company’s constitution that affects the likelihood of the company being able to pay a debt

creditor includes—

(a)

a person who, in a liquidation, would be entitled to claim in accordance with section 303 that a debt is owing to that person by the company; and

(b)

a secured creditor

proponent means a person referred to in section 228 who proposed a compromise in accordance with this Part.

Section 227 company: inserted, on 1 November 2007, by section 5 of the Companies Amendment Act 2006 (2006 No 56).

Section 227 creditor: replaced, on 1 July 1994, by section 28 of the Companies Act 1993 Amendment Act 1994 (1994 No 6).