Part V Share Capital, its Increase, Maintenance and Reduction

Chapter IV Reduction of Share Capital

137 Court order confirming reduction.

1

The court, if satisfied with respect to every creditor of the company who under section 136 is entitled to object to the reduction of capital that either—

a

his consent to the reduction has been obtained; or

b

his debt or claim has been discharged or has determined, or has been secured,

may make an order confirming the reduction on such terms and conditions as it thinks fit.

2

Where the court so orders, it may also—

a

if for any special reason it thinks proper to do so, make an order directing that the company shall, during such period (commencing on or at any time after the date of the order) as is specified in the order, add to its name as its last words the words “and reduced”; and

b

make an order requiring the company to publish (as the court directs) the reasons for reduction of capital or such other information in regard to it as the court thinks expedient with a view to giving proper information to the public and (if the court thinks fit) the causes which led to the reduction.

3

Where a company is ordered to add to its name the words “and reduced”, those words are, until the expiration of the period specified in the order, deemed to be part of the company’s name.