Companies Act 2014 section 85

Application to court for confirming order, objections by creditors and settlement of list of such creditors

Section 85 sets out the procedure by which a company that has passed a special resolution to reduce its company capital may apply to the court for confirmation of that resolution, including the notification requirements, creditor protections, and the court's powers in granting or refusing confirmation.

• A company must advertise its intention to apply to court in a daily newspaper in the district of its registered office and notify creditors outside the State electronically, providing a means for inquirers to learn the hearing date
• Creditors who can demonstrate that the proposed capital reduction would likely put the satisfaction of their debt or claim at risk, and who have not received adequate safeguards, are entitled to object to the reduction
• The court will settle a list of objecting creditors and may dispense with a creditor's consent if the company secures payment of that creditor's debt or claim to an amount determined by the court
• The court may confirm the resolution only if every entitled creditor has either consented, had their debt discharged or terminated, or had their debt secured, and the court may require the company to publish the reasons for the reduction

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