—(1) An application by a creditor under section 78D shall be determined by the Court in accordance with this section.
(2) The Court shall make an order cancelling the resolution if, at the time the application is considered, the resolution has not been cancelled previously, any debt or claim on which the application was based is outstanding and the Court is satisfied that —
the debt or claim has not been secured and the applicant does not have other adequate safeguards for it; and
it is not the case that security or other safeguards are unnecessary in view of the assets that the company would have after the reduction.
(3) Otherwise, the Court shall dismiss the application.
(4) Where the Court makes an order under subsection (2), the company must send notice of the order to the Registrar within 15 days beginning with the date the order is made.
(5) If a company contravenes subsection (4), every officer of the company who is in default shall be guilty of an offence.
(6) For the purposes of this section, a debt is outstanding if it has not been discharged, and a claim is outstanding if it has not been terminated.
[UK, 1985, ss. 56, 58]