Companies Act 2014 section 478

Protection of creditors

Section 478 deals with the right of creditors of merging companies to be heard in court when a merger is being confirmed.

• Creditors of any company involved in a merger are given a specific legal right to participate in the court confirmation process.
• The creditor must have an existing debt or claim against the merging company at the date the merger notice is published.
• The relevant publication date is the date of the notice required under section 470(2)(b).
• The creditor's right is to be heard by the court when it considers whether to confirm the merger under section 480.