Consultation on members’ schemes of arrangement
On 15 May 2023, the Federal Court of Australia (FCA) invited the Law Council of Australia to provide feedback on potential changes to the manner in which schemes of arrangement may be dealt with by the FCA (Consultation Letter).
The Law Council is grateful to the FCA for the opportunity to provide feedback on the proposals, and provides this submission in response to the Consultation Letter.
The Law Council notes that, on 19 May 2023, the New South Wales Supreme Court (NSWSC) published a revised version of its practice note which covers, among other things, schemes of arrangement (NSWSC Practice Note).1 The NSWSC Practice Note was not preceded by a consultation process. Whilst there is a logic and benefit in having a consistent approach to schemes of arrangement between the FCA and each of the state Supreme Courts, the Law Council encourages the FCA not to simply copy the NSWSC Practice Note, as there are some important areas in which scheme practitioners would benefit greatly from clear guidance from the FCA.
1 The Chief Justice of New South Wales, “Supreme Court Practice Note SC EQ 4”, Supreme Court Equity Division—Corporations List, 19 May 2023 (see here). Schemes of arrangement are addressed at -.