Deed Of Company Arrangement - Contents Gallery

Deed Of Company Arrangement

Deed Of Company Arrangement

Deed Of Company Arrangement

A deed of company arrangement, also known as a deed of trust or business trust, is a legal agreement that outlines the terms of a company’s dissolution. The agreement allows creditors to sell their assets for payment before a liquidation occurs. A deed of company arrangement can be helpful if you are facing bankruptcy and need to reduce your debts quickly to continue operating your business.

What is a deed of company arrangement?

A deed of company arrangement is a legal document that sets out the terms under which you and your business will be managed after its liquidation. It can also be called a ‘Deed of Company Arrangement’ or simply ‘DCA.’

Before considering this type of legal structure, it’s essential to understand what distinguishes it from other options available. In particular:

  • A deed of company arrangement usually means that all shares in the business will remain with their owners (unless otherwise specified). This contrasts with liquidation, where some or all claims might not be transferred automatically – meaning they may have less power over how the business is run than they would have under normal circumstances;
  • A DCA typically involves formal meetings between all shareholders before any decisions are made – but this may vary according to circumstances;
  • If there’s an existing administration order on file when one party wants another person removed from managing their affairs, then it may still apply even though everything else has changed hands;
  • Voluntary administrations are similar but tend not to involve formal meetings between shareholders because there isn’t usually enough time for these discussions before everything has been handed over


The company will be eligible for a deed of company arrangement if it meets all of the following criteria:

  • You must be a company.
  • You must have at least two creditors who agree to this arrangement and can provide evidence of their debt or interest rate (with their name, address, and contact details).
  • Your debt must be at least £25,000. This amount may increase in line with increases in the Consumer Price Index up to a maximum level of £50k per person. Who receives funding from your business (or entity). In addition, any additional costs incurred by an individual creditor that is not necessary for repayment should also be included in this calculation – as long as they do not exceed 10% per annum over three years from when funding was agreed upon by all parties involved to repay outstanding debts within five years after joining up together again under new management practices once they’ve been taken out through someone else who owns them all together now instead serving different purposes than before doing so before then when there wasn’t any need whatsoever, but now there’s plenty – especially since there are no guarantees either way yet anyway until things get rolling again next month which means everyone should keep calm while waiting patiently until then so nothing goes wrong! Just remember: patience pays off well financially speaking too!”

The voting process

The voting process is a crucial part of the deed of company arrangement process. It is important to note that if the creditors do not vote in favor of your proposed activity. Liquidation proceedings will be launched, and you will lose control over your business.

To ensure this does not happen, it’s best to consult an expert solicitor who can explain how a successful vote could benefit all parties involved with your company’s arrangements.

Deed of company arrangement or liquidation?

Deed of company arrangement or liquidation?

If your business has been in trouble. and you need to restructure. It may be time for a deed of company arrangement. This is a voluntary agreement between yourself and the directors. And creditors to resolve their debts with one another in exchange for some form of compensation. The main advantage of this approach over liquidation is that it allows you to continue trading. While reducing your liability on any debts owed by your business (although there are still risks associated with this). It also gives you more control over how much money is paid out as part of any agreement reached between all parties involved in its creation.

Pros and cons of a deed of company arrangement

A deed of company arrangement is a legal document that allows you to set up your business. Companies commonly use it with less than £2 million in assets, but it can also be extended to cover larger enterprises.

The advantages of using this form include the following:

  • You don’t need third parties to set up your new company. Everything happens between yourself and the solicitors who prepare the paperwork for you (or through their lawyers). This means no one else knows about your plans until it’s all done!
  • If anything goes wrong during this process. There’s no risk because everything has already been agreed upon beforehand – meaning if something does happen (and sometimes even if nothing does). There won’t be any expensive legal battles over whether or not what was done has been legally binding etcetera…

How to find out more about a deed of company arrangement

Once you have decided to go ahead with a deed of company arrangement. You must know more about the company and its financial position. It would help if you also understood what went wrong and how this can be fixed.

The next step is to consider what actions will be taken by the directors or shareholders in the future. As well as whether they are capable of turning around their companies’ fortunes.

A deed of company arrangement can save your business from liquidation if you have the support of your creditors.

A deed of company arrangement can save your business from liquidation if you have the support of your creditors. An act of company arrangement is a voluntary agreement between a company and its creditors to restructure its debts. It provides relief from some or all of its crippling debts, but only in return for certain conditions being met.

The debtor must agree that it will be wound up voluntarily within 180 days after completion of the agreement (or any extended period agreed by both parties). If this happens, creditors will receive no more than what they are owed under their claims – nothing more!


The deed of company arrangement is a handy tool to protect your business from liquidation. It enables your creditors to vote on the proposal. Which means they can help you keep trading while negotiating with you over your debts. If the creditors agree with the proposal, they will support it and give their approval before submitting it to court. If not, then it can be rejected by them or removed from the list altogether, and so forth. The main downside is that there is no guarantee that this plan will work as intended. But if everything goes smoothly, then there could be significant savings made on legal fees associated with going through court proceedings as well as any costs incurred during these processes

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