Where a private company passes a special resolution approving for purposes of this Chapter any payment out of capital for the redemption or purchase of any of its shares—
any member of the company other than one who consented to or voted in favour of the resolution; and
any creditor of the company,
may within 5 weeks of the date on which the resolution was passed apply to the court for cancellation of the resolution.
The application may be made on behalf of the persons entitled to make it by such one or more of their number as they may appoint in writing for the purpose.
If an application is made, the company shall—
forthwith give notice in the prescribed form of that fact to the registrar of companies; and
within 15 days from the making of any order of the court on the hearing of the application, or such longer period as the court may by order direct, deliver an office copy of the order to the registrar.
A company which fails to comply with subsection (3), and any officer of it who is in default, is liable to a fine and for continued contravention, to a daily default fine.