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In force2020 Revised Edition
Contents

Part 4 · Shares, Debentures and Charges

78H. Creditor protection

(1)

This section applies if a company makes an application under section 78G(1) and the proposed reduction of share capital involves either —

(a)

a reduction of liability in respect of unpaid share capital; or

(b)

the payment to a shareholder of any paid‑up share capital,and also applies if the Court so directs in any other case where a company makes an application under that section.

(2)

Upon the application to the Court, the Court is to settle a list of qualifying creditors.

(3)

If the proposed reduction of share capital involves either —

(a)

a reduction of liability in respect of unpaid share capital; or

(b)

the payment to a shareholder of any paid‑up share capital,the Court may, if having regard to any special circumstances of the case it thinks it appropriate to do so, direct that any class or classes of creditors are not qualifying creditors.

(4)

For the purpose of settling the list of qualifying creditors, the Court —

(a)

must ascertain, as far as possible without requiring an application from any creditor, the names of qualifying creditors and the nature and amount of their debts or claims; and

(b)

may publish notices fixing a day or days within which creditors not included in the list are to claim to be so included or are to be excluded from the list.

(5)

Any officer of the company who —

(a)

intentionally conceals the name of a qualifying creditor;

(b)

intentionally misrepresents the nature or amount of the debt or claim of any creditor; or

(c)

aids, abets or is privy to any such concealment or misrepresentation,shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $15,000 or to imprisonment for a term not exceeding 3 years.

(6)

In this section and section 78I but subject to subsection (3), “qualifying creditor” means a creditor of the company who, at a 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.

Report

Part 5

Management and Administration

Part 6

Financial Statements and Audit

Part 7

Arrangements, Reconstructions and Amalgamations

Part 8

Part 8A

Part 9

Investigations

Part 10

Dissolution

Part 10A

Transfer of Registration

Part 11

Various Types of Companies, Etc.

Part 11A

Register of Controllers, Nominee Directors and Nominee Shareholders of Companies

Part 12

General

Schedules