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234: Costs of compromise
or “Who pays for meetings about company debt compromises”
You could also call this:

“Explaining key terms used in this part of the Companies Act”

In this part of the law, you’ll learn about some important terms. An ‘arrangement’ means reorganising a company’s share capital. This can be done by combining shares of different types or by splitting shares into different types, or both.

When the law talks about a ‘company’, it can mean a few different things. It can be a regular company as defined in section 2, or an overseas company that is registered in New Zealand. It can also mean an association or any other type of organisation that this part of the law applies to.

A ‘creditor’ is someone who is owed money by the company. This includes people who could claim money if the company was closing down, as explained in section 303. It also includes people who have a special right to be paid back before others (called secured creditors).

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Next up: 236: Approval of arrangements, amalgamations, and compromises

or “Court approval for company changes and agreements”
Next

Part 15 Approval of arrangements, amalgamations, and compromises by court

235Interpretation

  1. In this Part, unless the context otherwise requires,—

    arrangement includes a reorganisation of the share capital of a company by the consolidation of shares of different classes, or by the division of shares into shares of different classes, or by both those methods

      company means—

      1. a company within the meaning of section 2:
        1. an overseas company that is registered on the overseas register:
          1. an association:
            1. any other body corporate to which this Part applies under any enactment.

              creditor includes—

              1. a person who, in a liquidation, would be entitled to claim in accordance with section 303 that a debt is owing to that person by the company; and
                1. a secured creditor