Scope of provisions

Although the provisions of the Corporations Act (CA) relating to arrangements and reconstructions are found in Ch 5 dealing with external administration, they are not limited to corporations which are, or may be, insolvent. A scheme covered by the provisions (in these notes all referred to as “schemes”) may be between the corporation and its creditors, or some of them, between the corporation and its members, or some of them, or between all three (see, for example, Pr 235.500 and Pr 235.509, as well as the creditors’ moratorium scheme in Pr 235.515). It may, especially in the case of amalgamations, apply to a number of corporations. By reason of the definition of “Pt 5.1 body” in s 9, CA, it can also apply to foreign corporations registered here. See Scope of provisions.