Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Scheme of Arrangement definition

What does Scheme of Arrangement mean? A court‑supervised compromise or arrangement used to restructure a company’s debt, share capital or ownership by binding creditors or members (grouped into classes) to an agreed proposal. In the UK it is a statutory procedure under Part 26 of the Companies Act 2006; in Ireland it is provided for in Part 9, Chapter 1 of the Companies Act 2014. Common uses include debt restructurings, solvent reorganisations and public takeovers. Process: the court orders meetings of each class, reviews class composition, and, if the requisite majorities approve, considers whether to sanction the scheme. At each meeting the threshold is a...

Comparing schemes of arrangement with CVAs and administration in England and Wales: control, post-Brexit jurisdiction, moratoria, creditor binding and cram-down

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

The table below sets out a comparison of the features and benefits of a Scheme of Arrangement (see: Schemes of arrangement—overview) against two alternative procedures in England and Wales, the company voluntary arrangement (CVA) (see: Company voluntary arrangements—overview) and administration (see: Administration—overview). Although schemes and CVAs are genuine substitutes, and cannot be pursued together, administration is a separate Insolvency process that can be combined with either a scheme or a CVA (see Re Petropavlovsk plc (in administration), where schemes were used to exit the administrations).

Control of process

Scheme of arrangement: A scheme is not a formal insolvency process, and making a court application in connection with a scheme does not disturb the company’s management.
CVA: A CVA proceeds under the oversight of the nominee/supervisor, who must be an insolvency practitioner; nevertheless, the directors remain in charge of the company.
Administration: Administration is a formal insolvency procedure in which an insolvency practitioner, the administrator, supplants the directors and assumes control of the company...

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Web page updated on 21/05/2026

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