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class compositioncompromise with creditors
Sovereign Life Assurance v Dodd
[1892] 2 QB 573
Key Principle
For the purposes of a scheme or compromise with creditors a 'class' must be confined to those persons whose rights are not so dissimilar as to make it impossible for them to consult together with a view to their common interest; creditors with materially different rights must be placed in, and vote in, separate classes.
Area of Law
General
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