COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 67 Application to court for confirming order, objections by creditors' and settlement of list of objecting creditors.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 67

Application to court for confirming order, objections by creditors' and settlement of list of objecting creditors.

67.(1) Where a company has passed a resolution for reducing share capital, it
may apply to the court for an order confirming the reduction.

(2) 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 directs, the following provisions shall have effect, subject nevertheless
to sub-section (3):

(a)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 admissible in proof against the company,
shall be entitled to object to the reduction;

(b)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 creditor, the names of those creditors and the nature and
amount of their debts or claims, and may publish notices fixing a day or days
within which creditors not entered on the list are to claim to be so entered
or are to be excluded from the right of objecting to the reduction;

(c)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 company
securing payment of his debt or claim by appropriating, as the court may
direct, the following amount:

(i)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 amount of the debt
or claim;

(ii)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 inquiry and
adjudication 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
sub-section (2) shall not apply as regards any class or any classes of
creditors.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 67