Section 15Part 2 — Constitution and Incorporation of Companies and Associations
Application to court for confirming order, objections by creditors
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Amended by LG13/S2
Where a company has passed a special resolution for reducing share capital, it may apply by petition to the Court for an order confi rming the reduction.
Where the proposed reduction of share capital involves either diminution of liability in respect of unpaid share capital or the payment to any shareholder of any paid - up share capital, and, in any other case, if the Court so direct s, subject to subsection
, the following shall have effect —
every creditor of the company who at the date fixed by the Court is entitled to any debt or claim which, if that date were the commencement of the winding up of the company, would be admis sible in proof against the company, shall be entitled to object to the reduction;
the Court shall settle a list of creditors so entitled to object, and for that purpose shall ascertain as far as possible without requiring an application from any credit or, the names of those creditors and the nature and amount of their debts or claims, and may publish notices fixing a day or period on or within which creditors not entered on the list are to claim to be so entered or are to be excluded from the right of o bjecting to the reduction; and
where a creditor entered on the list whose debt or claim is not discharged or has not determined does not consent to the reduction, the Court may, if it thinks fit, dispense with the consent of that creditor, on the compa ny securing payment of that person’s debt or claim by appropriating as the Court may direct, the following amount —
if the company admits the full amount of the debt or claim, or, though not admitting it, is willing to provide for it, then the full amo unt of the debt or claim; or
if the company does not admit and is not willing to provide for the full amount of the debt or claim, or, if the amount is contingent or not ascertained, then an amount fixed by the Court after the like enquiry and adjudic ation as if the company were being wound up by the Court. ( 3 ) Where a proposed reduction of share capital involves either the diminution of any liability in respect of unpaid share capital or the payment to any shareholder of any paid - up share capital the Court may, if having regard to any special circumstances of the case it thinks proper so to do, direct that subsection (2) shall not apply as regards any class or any classes of creditors.