Companies’ Creditors Arrangement Act

Marginal note:Company may establish classes

• 22 (1) A debtor company may divide its creditors into classes for the purpose of a meeting to be held under section 4 or 5 in respect of a compromise or arrangement relating to the company and, if it does so, it is to apply to the court for approval of the division before the meeting is held.

• Marginal note:Factors

  (2) For the purpose of subsection (1), creditors may be included in the same class if their interests or rights are sufficiently similar to give them a commonality of interest, taking into account

  • (a) the nature of the debts, liabilities or obligations giving rise to their claims;

  • (b) the nature and rank of any security in respect of their claims;

  • (c) the remedies available to the creditors in the absence of the compromise or arrangement being sanctioned, and the extent to which the creditors would recover their claims by exercising those remedies; and

  • (d) any further criteria, consistent with those set out in paragraphs (a) to (c), that are prescribed.

• Marginal note:Related creditors

  (3) A creditor who is related to the company may vote against, but not for, a compromise or arrangement relating to the company.