Company scheme of arrangement

It was established case law that a company was free to select the creditors with whom it wished to enter into an arrangement.

There was no need to include creditors whose rights were not sheltered by the scheme. In entering into a scheme, it was not necessary for the company to consult any class of creditors who were not affected, either because their rights were untouched or because they had no economic interest in the company.

If there was a dispute about that, then the court was entitled to ascertain whether a purported class actually had an economic interest in a real, as opposed to a theoretical or merely fanciful, sense, and take action accordingly.