ADVOKS GLOBAL · KENYA
Companies Act
926. Court order sanctioning compromise or arrangement
Edition: 2024-12-27 · In force
926. Court order sanctioning compromise or arrangement
(1)If a majority in number representing seventy-five percent in value of—(a)the creditors or class of creditors; or(b)the members or class of members, present and voting either in person or by proxy at the meeting convened in accordance with section 923 agrees to a compromise or arrangement, the Court may, on an application under subsection (2), sanction the compromise or arrangement.(2)An application for an order under subsection (1) may be made by—(b)any creditor or member of the company; or(c)if the company is in liquidation or under administration, the liquidator or administrator.(3)A compromise or agreement sanctioned by the Court is binding—(a)on all creditors or the class of creditors, or on the members or class of members, concerned; and(b)on the company or, in the case of a company that is in liquidation, the liquidator and contributories of the company.(4)The order of the Court has no effect until a copy of it has been lodged with the Registrar for registration.