ABSTRACT
This chapter focuses on restructuring of the shareholdings of a company or corporate group, rather than simply debt restructuring. The administrator must perform his functions in the interests of the company's creditors as a whole with the objective of rescuing the company as a going concern. Administrators can also use the Part 26 scheme of arrangement procedure within the context of an administration as can liquidators in the course of a winding up, although use of Part 26 of by the liquidator of a company in involuntary liquidation is rare. The term takeover is typically used to describe acquisition of sufficient shares in a widely held company, which shares are usually listed on a stock exchange, to exercise control of the company. Turning finally to use of Part 26 schemes of arrangement by companies in financial difficulty, Part 26 is not restricted to compromises with creditors before a company becomes subject to a formal rescue or winding-up procedure.
