When the new legislation on company reorganisation was introduced in 1996 the old Composition Act was recalled and the composition procedure was integrated as a part of the new reorganisation procedure. It is, thus, no longer possible to obtain a forced composition outside the scope of a reorganisation.
Under normal circumstances and in order to be valid
- the composition must provide all similarly entitled creditors with similar rights,
- the composition must provide at least 25 percent of the amount of the claims, and
- the prescribed minimum distribution shall be paid within one year following the composition order.
(to be continued)