Unsecured creditors can no longer request payment from a merging/demerging company of sums that are not due and payable at the time of the merger/demerger.
This change came into effect on 31 December 2010. It clarifies inconsistencies in previous court practice which allowed some creditors, depending on their rights, to request payment of such sums within the six-month period after registration of the merger/demerger as an alternative to seeking security for their claim.
Unsecured creditors whose payments are not due and payable from a merging/demerging company may now only request security and then, if it is not provided, ask the courts to secure their claims by measures such as distraint or injunction.
Law: amendment of Commerce Act