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

This section applies where a company has passed a special resolution for reducing share capital under section 78B or 78C.

Any creditor of the company to which this subsection applies may, at any time during the 6 weeks beginning with the resolution date, apply to the Court for the resolution to be cancelled.

Subsection (2) applies to a creditor of the company who, at the date of the creditor’s application to 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.

When an application is made under subsection (2) —