Section 118. Creditor’s right to object to the reduction of the share capital by the company

(1) This section shall apply to a company which has passed a special resolution for reducing share capital under section 117.

(2) Any creditor of the company may apply to the Court for the resolution to be cancelled within six weeks from the date of the resolution.

(3) Subsection (2) shall apply to a creditor of the company who is entitled to any debt or claim which would be admissible as proof against the company at the date of his application to the Court if such date were the commencement of the winding up of the company.

(4) When an application is made under subsection (2)—

(a) the creditor shall as soon as possible serve the application on the company; and

(b) the company shall as soon as possible give to the Registrar notice of the application.