HC Deb 05 December 1867 vol 190 c605

said, he wished to ask Mr. Solicitor General, Whether any Rules have been issued by the Court of Chancery in relation to Companies applying to reduce their capital under the Companies Amendment Act (1867); and if proceedings can now be taken in the Court of Chancery for enabling Companies to effect this object?


said, in reply, that the Judges in the Court of Chancery had not yet found it necessary to draw up any rules relating to companies applying to reduce their capital under the Act in question, but proceedings could nevertheless be taken, and in the Court of one of the Vice Chancellors actually had been taken, for such a reduction of capital. The course adopted was this:—The Judge ascertained, as far as was practicable, the position of the Company and the amount of its debts. He then fixed a time within which creditors were invited by advertisement to State whether they consented or objected to the proposed reduction. At the expiration of this time, the Judge required to be satisfied that the debts of all those creditors who had not consented had either been paid or properly secured. When this had been done, but not before, the sanction of the Court was given to the reduction of the capital of the Company.