2 Power to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim (present or future, certain or contingent, ascertained or sounding only in damages) against the company, or whereby the company may be rendered liable.
Definitions used in Schedule 4, paragraph 2 1
- the company
2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.
Defined in Sch.4ZZA para.2 · see it in the full Act
Cases considering Schedule 4, paragraph 2 6
Greenhaven Motors Ltd, Re
Confers a compromise power covering claims against the company. The settlement included a compromise within this paragraph and therefore required sanction under section 167(1)(a). (see Chadwick LJ, section beginning “Part I to Schedule 4 of the Act includes”)
Lune Metal Products Ltd v Getliffe & Ors
The court identifies the liquidator’s express power to compromise or arrange with creditors as a contrast with the administrator’s powers. (see [33])
Mahomed & Anor v Morris & Ors
The paragraph formed part of the statutory powers to compromise claims against the company or questions affecting company assets. The liquidation committee sanctioned the liquidators’ exercise of the relevant compromise power (see para [36]).
- Leite v Amicorp (UK) Ltd
- Goel & Anor v Grant & Anor (As Joint Administrators of Meem SL Ltd) & Anor
- Dowland v The Architects Registration Board
What each judgment says about Schedule 4, paragraph 2 is in the case-law panel in the full Act.