Section 963 of The Companies Act No. 17 of 2015: Power of the Court to exclude certain requirements in the case of division

    

(1) In the case of a division, the Court may, by order, direct that—
(a) in relation to any company involved in the division, the requirements of sections 950 and 955 do not apply; and
(b) in relation to an existing transferee company section 961 has effect with the omission of the first and second conditions specified in that section, if the Court is satisfied that the three conditions specified in subsections (2) to (4) will be fulfilled in relation to that company.
(2) The first condition is that the members of that company will have received, or will have been able to obtain free of charge, copies of the relevant documents—
(a) in time to examine them before the date of the first meeting of the members, or a specified class of members, of that company convened for the purposes of agreeing to the scheme; or
(b) in the case of an existing transferee company if, in the circumstances described in section 961, no meeting is held, in time to require a meeting as referred to in subsection (4) of that section.
(3) The second condition is that the creditors of that company will have received, or could have obtained, free of charge copies of the draft terms in time to examine them—
(a) before the date of the first meeting of the members, or a specified class of members, of the company convened for the purposes of agreeing to the scheme; or
(b) in the circumstances referred to in subsection (2)(b), at the same time as the members of the company.
(4) The third condition is that the members or creditors of the transferor company, or any transferee company, would be prejudiced by making the order concerned.
(5) In this section, "relevant documents" means the documents specified in section 955(3).


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

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