Section 968 of The Companies Act No. 17 of 2015: Liability of transferee companies for each other’s defaults
(1) In the case of a division, each transferee company is jointly and severally liable for any liability transferred to any other transferee company under the scheme to the extent that the other company has failed to satisfy that liability. This subsection is subject to subsections (2) and (3).
(2) If a majority in number representing seventy-five percent in value of the creditors, or a specified class of creditors, of the transferor company, present and voting either in person or by proxy at a meeting convened for the purposes of agreeing to the scheme, so agree, subsection (1) does not apply in relation to the liabilities owed to the creditors or that class of creditors.
(3) A transferee company is not liable under this section for an amount greater than the net value transferred to it under the scheme.
(4) For the purpose subsection (3), the "net value transferred" is the value at the time of the transfer of the property transferred to it under the scheme less the amount at that date of the liabilities so transferred.
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