COMPANIES ACT - 1963 (ACT 179)

    Section - 76 - Application for Confirming Order

    (1) Where a company has passed a resolution requiring confirmation it may apply to the Court for an order confirming the same.

    (2) Where the resolution requiring confirmation involves either diminution of liability in respect of shares with an unpaid liability or a payment or return to any shareholders, and in any other case if the Court so directs, the following provisions shall have effect unless, having regard to the special circumstances of the case, the Court shall otherwise direct, that is to say,

    (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 oppose the confirmation;

    (b) the Court shall settle a list of creditors so entitled to oppose, 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 opposing the confirmation;

    (c) where a creditor entered on the list whose debt or claim is not discharged or has not determined does not consent to the confirmation, 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, that is to say,

    (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 under the provisions of the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180).

    (3) The Court may refer the application to the Registrar who shall appoint one or more competent reporters to investigate the fairness of the resolution for reduction and to report thereon to the Court.

    (4) The remuneration of the reporters shall be fixed by the Registrar and it and the expenses of the investigation shall be borne by the company.