Determining Courts' jurisdiction to sanction schemes of arrangement involving third party releases: A policy analysis
Article
Qu, Charles Zhen. 2024. "Determining Courts' jurisdiction to sanction schemes of arrangement involving third party releases: A policy analysis." Singapore Journal of Legal Studies. 2024, pp. 107-125.
| Article Title | Determining Courts' jurisdiction to sanction schemes of arrangement involving third party releases: A policy analysis |
|---|---|
| ERA Journal ID | 17406 |
| Article Category | Article |
| Authors | Qu, Charles Zhen |
| Journal Title | Singapore Journal of Legal Studies |
| Journal Citation | 2024, pp. 107-125 |
| Number of Pages | 19 |
| Year | 2024 |
| Publisher | National University of Singapore |
| Place of Publication | Singapore |
| ISSN | 0218-2173 |
| 3029-1216 | |
| Web Address (URL) | https://law.nus.edu.sg/sjls/wp-content/uploads/sites/14/2024/07/sjls-mar-24-107-1.pdf |
| Abstract | It is often necessary for a company to reach a compromise with its creditors, and where necessary, third parties. A useful tool for facilitating such a compromise is the scheme of arrangement, a court-controlled procedure for restructuring the relationship between the company and its members or creditors. The scheme provisions are, however, silent on whether a third-party release may be incorporated into a scheme. Since the mid 2000s, the Australian and UK courts have developed two different tests, namely the nexus test and the necessity test, to fill this statutory gap. This paper discusses policy concerns, if any, that the alternative tests have given cause to, and if the answer is 'yes', how these concerns should be addressed. The paper concludes that the necessity test does, and the nexus test does not, give cause for concern and that the latter should be adopted for determining scheme jurisdiction in all cases. |
| Contains Sensitive Content | Does not contain sensitive content |
| ANZSRC Field of Research 2020 | 480504. Legal institutions (incl. courts and justice systems) |
| Byline Affiliations | Charles Darwin University |
| School of Law and Justice |
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