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Section 409 of The Companies Act No. 17 of 2015: Creditors entitled to object to reduction

    

(1) When this section applies, each creditor of the company who, at the date fixed by the Court, is entitled to a debt or claim that, if that date were the commencement of the liquidation of the company would be admissible in proof against the company, is entitled to object to the reduction of capital.
(2) The Court is required to settle a list of creditors entitled to object and for that purpose it—
(a) shall ascertain, as far as possible without requiring an application from any of the creditors, the names of those creditors and the nature and amount of their debts or claims; and
(b) may publish notices fixing a day or days within which creditors whose names are not entered on the list-
(i) can claim to have their names so entered; or (ii) are to be excluded from the right to object.
(4) If a creditor entered on the list whose debt or claim has not been not discharged, or has been established but not terminated, does not consent to the reduction, the Court may, if it considers it appropriate to do so, dispense with the consent of that creditor on the company securing payment of the debt or claim.
(5) For the purpose of subsection (4), the company shall secure the debt or claim by appropriating (as the Court may direct)—
(a) if the company admits the full amount of the debt or claim (or, although not admitting it, is willing to provide for it) — the full amount of the debt or claim; or
(b) if the company does not admit, and is not willing to provide for, the full amount of the debt or claim, or if the amount is contingent or not ascertained—an amount fixed by the Court after conducting the same kind of inquiry and adjudication as would be conducted if the company were being liquidated by the Court.

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Disclaimer: This document is not to be taken as legal advise.

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