Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 510

510. (1) An arrangement entered into between a company about to be, or in the
course of being, wound up and its creditors is, subject to subsection (4):

   (a)  binding on the company if sanctioned by a special resolution; and

   (b)  binding on the creditors if a resolution in favour of the arrangement
        is passed at a meeting of creditors by a majority of the creditors
        present and voting, either in person or by proxy, being a majority
        whose debts against the company amount in the aggregate to at least
        75% of the total amount of the debts of the creditors of the company
        present and voting, either in person or by proxy.

(2) A creditor shall be accounted a creditor for value for such sum as upon an
account fairly stated, after allowing the value of security or liens held by
the creditor and the amount of any debt or set-off owing by the creditor to
the company, appears to be the balance due to the creditor.

(3) A dispute about the value of any such security or lien or the amount of
any such debt or set-off may be settled by the Court on the application of the
company, the liquidator or the creditor.

(4) A creditor or contributory may, within 3 weeks after the completion of the
arrangement, appeal to the Court in respect of the arrangement, and the Court
may confirm, set aside or modify the arrangement and make such further order
as it thinks just.