78D. Creditor’s right to object to company’s reduction

Question 1

78D. Creditor’s right to object to company’s reduction

Answer 1

General overview
[78D.01] An avenue for creditor objection to the reduction of capital is provided for in s 78D. A time frame of six weeks from the resolution date is given to any creditor to lodge his objections.

Question 2

Creditor’s objection

Answer 2

[78D.02] Any creditor may object to a capital reduction, at any time during the six weeks beginning with the resolution date, by applying to the court to cancel the resolution: s 78D(2). Only creditors whose claims would be admissible in proof in a winding up of the company may apply to object to the capital reduction: s 78D(3).