78I. Court order approving reduction

Question 1

78I. Court order approving reduction

Answer 1

General overview
[78I.01] Section 78I sets out the court’s powers hearing an application by the company for a proposed capital reduction under s 78G.

Question 2

Debts and claims secured or safeguarded

Answer 2

[78I.02] Subsection (2) provides that the court shall not approve the capital reduction if a qualifying creditor’s debt or claim has not been adequately secured or safeguarded, unless he consents to the reduction.

Question 3

Filing obligations

Answer 3

[78I.03] Subsection (3) sets out the filing obligations of a company who has successfully obtained court sanction of its capital reduction.