(
1984 Ed.]
Companies
[CAP. 32
67
(1A) Except as provided in this Ordinance, no company limited by shares or limited by guarantee and having a share capital shall purchase or subscribe for any shares in the company or reduce its share capital in any way; and this subsection shall apply as if any share premium account or capital redemption reserve fund of a company were paid up share capital of the company.
(Added 6 of 1984, s. 28)
(2) A special resolution under this section is in this Ordinance referred to as a resolution for reducing share capital.
59. (1) Where a company has passed a resolution for reducing share capital, it may apply by petition 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 subsection (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...
Application to court for confirming order, objections by creditors and settlement of list of objecting creditors.
1929 c. 23, s. 56.
(
Page 325
Page 326
(
1984 Ed.]
Companies
[CAP. 32
67
(1A) Except as provided in this Ordinance, no company limited by shares or limited by guarantee and having a share capital shall purchase or subscribe for any shares in the company or reduce its share capital in any way; and this subsection shall apply as if any share premium account or capital redemption reserve fund of a company were paid up share capital of the company.
of 1984, s. 28)
(Added, 6
(2) A special resolution under this section is in this Ordinance referred to as a resolution for reducing share capital.
59. (1) Where a company has passed a resolution for reduc- ing share capital, it may apply by petition 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 subsection (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 com- pany, 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
Application to court for con- firming order, objections by creditors and settlement of list of objecting creditors.
1929 c. 23, s. 56.
(
Page 325Page 326
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