78E. Position at end of period for creditor objections

Question 1

78E. Position at end of period for creditor objections

Answer 1

General overview
[78E.01] Section 78E(1) and (2) apply where no creditor makes an application to court to cancel the proposed capital reduction carried out by a private and public company under s 78B respectively.
In contrast, s 78E(3) and (4) apply where creditor(s) have applied to oppose the proposed capital reduction, and the said application has been brought to an end by the dismissal thereof under s 78F or without determination such as where the application was withdrawn.

Question 2

Filing obligations

Answer 2

[78E.02] Subsection (1)(i) and (ii) sets out the documents that have to be filed and and lodged with the registrar upon a successful capital reduction, viz. (a) copy of the resolution; (b) copy of the solvency statement; (c) statement made by the directors that s 78B has been complied with. The filing obligations in respect of a public company undertaking a capital reduction are similar to that of a private company: s 78E(2).
Where the creditor(s)’ opposition is dismissed or his application withdrawn, the company has to lodge with the registrar: (a) a statement by the directors that the capital reduction was properly conducted in accordance with s 78B; (b) solvency statement; and (c) copy of the court order dismissing the application.