Companies Act (Cap. 386), article 368

368. (1) The division shall not take effect until three months from the date of the publication of the statement referred to i n article 401(1)( e) relating to the extraordinary resolutions approving the division. (2) During the aforesaid period of three months any creditor of any of the companies involved in a division whose debt existed prior to the publication of the statement referred to in article 401(1)( e), provided for pursuant to the registration required by virtue of article 361(5) may, by sworn application, object to t he division, and if he shows good cause why it should not take eff ect, the court shall either uphold the objection or allow the divisi on on sufficient securi ty being given. (3) In so far as a creditor of a company to which the obligation or liability has been allocated i n accordance with the draft te rms of division has not obtained satisfaction, the recipient companies shall be jointly and severally liable for that obligation: Provided that as regards the recipient companies other than the one to which the obligation or liability has been allocated , this liability shall be limited to t he net assets allocated to each of those companies: Provided further that this sub- article shall not apply where the operation involving the division is subject to the supervis ion of the court in accordance with article 375 and a majority in numb er representing three-fourths in val ue of the creditors of the com pany to be divided have agreed to forego such joint and several liab ility 232 CAP. 386.] COMP ANIES at a meeting held pursu ant to article 375(2)( c). (4) The provisions of sub-articles (1), (2) and (3) shall apply to the debenture holders of the companies involved in a division s o long as the division has not already been approved by the deben ture holders, individually or by a sp ecial meeting of the debenture holders called specifically for t he purpose, at which meeting a ll the debenture holders shall signify their consent. Protection of holders of securities in a division.