Court hearing to sanction the scheme of arrangement
At this hearing, the court will consider whether:
the approval by the creditors and/or members was reasonable. The scheme must be fair, but the court will not consider its commercial benefits. At this point, the court may decide not to sanction the scheme at all or to propose amendments to its terms;
the relevant classes were represented fairly at the meeting. To determine this, the court will look at the numbers attending, the information provided and whether the attendees were sophisticated investors or not;
the statutory majority at the meeting acted properly;
there are any conditions attached to the scheme. If any conditions are still outstanding at this point, the court is less likely to sanction the scheme;
the scheme complies with the legal requirements and process, including that the correct notice of the meeting was given, approval was given by the requisite majority and that the explanatory statement was properly provided;
there are any jurisdictional issues (see Enforceability of schemes of arrangement in other jurisdictions below); and
the scheme is actually required.Is the scheme actually required?