Citation and commencement

1. —(1) These Regulations may be cited as the Companies (Reduction of Capital) (Creditor Protection) Regulations 2008.

(2) These Regulations come into force on 6th April 2008.

Amendment of the Companies Act 1985

2. In section 136(3) of the Companies Act 1985( 3 ) (application to court for order confirming reduction of share capital: creditors entitled to object)—

(a) after “who” insert “— (a)”, and

(b) after “admissible in proof against the company” insert—

“ , and

(b) can show that there is a real likelihood that the reduction would result in the company being unable to discharge his debt or claim when it fell due, ” .

Amendment of the Companies (Northern Ireland) Order 1986

3. In section 146(3) of the Companies (Northern Ireland) Order 1986( 4 ) (application to court for order confirming reduction of share capital: creditors entitled to object)—

(a) after “who” insert “— (a)”, and

(b) after “admissible in proof against the company,” insert—

“ and

(b) can show that there is a real likelihood that the reduction would result in the company being unable to discharge his debt or claim when it fell due, ” .

Transitional provision

4. The amendments made by regulations 2 and 3 do not apply where the application to the court for an order confirming the proposed reduction of share capital was made before 6th April 2008.