Key Points
ACRA explains member-approval and court-order routes. The member route includes a special resolution, applicable solvency declaration and publication, followed by a six-week creditor-objection period. With no objection, the final filing is made between six and eight weeks after the resolution. The court route requires filing the approving order within the prescribed period. Reduction does not take effect merely when members agree to it.
Build the Members’ Approval Sequence
For a reduction using members’ approval, prepare the special resolution and required solvency declaration. ACRA distinguishes declaration validity periods for private and public companies, so check the applicable category before arranging signatures. The special-resolution filing is due within 14 days, while the proposed-reduction publication has its own eight-day timing requirement. Creditors then have six weeks after the special resolution to apply to court to object. Keep the resolution, publication and objection-period dates in one timetable: completing an early filing does not allow the company to skip the later creditor-protection stage.
Choose the Final Filing for the Actual Outcome
If there are no creditor objections, the section 78E filing is made between six and eight weeks after the special resolution. That final filing is when the reduction takes effect. Where a creditor applies to court, ACRA identifies separate notices for the creditor’s application and any court-ordered cancellation of the resolution. A reduction approved by court instead requires the approving court order to be filed within 90 days of the order date, with a separate extension route if more time is needed. Do not treat a share buyback or alteration of share capital as an interchangeable filing simply because it also changes the capital position.
Official Source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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