When the capital reduction will be cancelled by the Court?
Cancellation of capital reduction
The court will cancel a capital reduction order if:
- Any applicant creditor’s debt or claim is outstanding, and it has not been secured or safeguarded; and
- It is necessary to secure or safeguard these debts or claims in view of the company’s remaining assets after the reduction
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With any creditor objections present:
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- As soon as possible, the company must give notice to ACRA of the creditor objection(s);
- The creditor objection(s) must be dismissed by the court; and
- The company must, within 15 days from the date of dismissal of the last creditor objection, lodge a solvency statement, a statement from the directors that all creditor objection(s) have been dismissed, the court order(s) dismissing the objection(s), and a notice containing the reduction information.
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Without any creditor objections present:
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- If there are no creditor objections, the company must submit the following documents with ACRA within 8 weeks of the resolution date:
- The special resolution,
- Solvency Statement,
- Director’s declaration and
- Notice containing the reduction information.
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24/7/365
