- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (06/04/2008)
- Gwreiddiol (a wnaed Fel)
Version Superseded: 01/10/2009
Point in time view as at 06/04/2008.
There are currently no known outstanding effects for the The Companies (Northern Ireland) Order 1986 (revoked), PART III.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
F18Order repealed (prosp.) by Companies Act 2006 (c. 46), ss. 1284(2), 1295, 1300(2), Sch. 16 and the repeal being partly in force, as to which see individual Articles (with savings (with adaptations) by Companies Act 2006 (Commencement No. 6, Saving and Commencement Nos. 3 and 5 (Amendment)) Order 2008 (S.I. 2008/674), arts. 2(3), {4}, Sch. 2) and subject to amendments (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b)(2), Sch. 1 paras. 135, 147, 148 {Sch. 2 Note 1} (with arts. 6, 11, 12) and subject to amendments (6.4.2008) by S.R. 2008/133, {regs. 2, 3}
53.—(1) Subject to this Article and Articles 54 to 58, a private company (other than a company not having a share capital) may be re-registered as a public company if—
(a)a special resolution that it should be so re-registered is passed; and
(b)an application for re-registration is delivered to the registrar, together with the necessary documents.
A company cannot be re-registered under this Article if it has previously been re-registered as unlimited.
(2) The special resolution must—
(a)alter the company's memorandum so that it states that the company is to be a public company; and
(b)make such other alterations in the memorandum as are necessary to bring it (in substance and in form) into conformity with the requirements of this Order with respect to the memorandum of a public company (the alterations to include compliance with Article 35(1)[F1, or section 33 of the Companies (Audit, Investigations and Community Enterprise) Act 2004,] as regards the company's name); and
(c)make such alterations in the company's articles as are requisite in the circumstances.
(3) The application must be in the prescribed form and be signed by a director or secretary of the company; and the documents to be delivered with it are the following—
(a)a printed copy of the memorandum and articles as altered in pursuance of the resolution;
(b)a copy of a written statement by the company's auditors that in their opinion the relevant balance sheet shows that at the balance sheet date the amount of the company's net assets (within the meaning given to that expression by [F2section 831 of the Companies Act 2006]) was not less than the aggregate of its called-up share capital and undistributable reserves;
(c)a copy of the relevant balance sheet, together with a copy of an unqualified report (as defined in Article 56) by the company's auditors in relation to that balance sheet;
(d)if Article 54 applies, a copy of the valuation report under paragraph (2)(b) of that Article; and
(e)[F3subject to paragraph (3A),] a statutory declaration in the prescribed form by a director or secretary of the company—
(i)that the special resolution required by this Article has been passed and that the conditions of Articles 54 and 55 (so far as applicable) have been satisfied, and
(ii)that, between the balance sheet date and the application for re-registration, there has been no change in the company's financial position that has resulted in the amount of its net assets becoming less than the aggregate of its called-up share capital and undistributable reserves.
[F3(3A) In place of the statutory declaration referred to in sub-paragraph (e) of paragraph (3), there may be delivered to the registrar using electronic communications a statement made by a director or secretary of the company as to the matters set out in heads (i) and (ii) of that sub-paragraph.
(3B) Any person who makes a false statement under paragraph (3A) which he knows to be false or does not believe to be true is liable to imprisonment or a fine, or both.]
(4) In this Article and Articles 54 and 56, “relevant balance sheet” means a balance sheet prepared as at a date not more than 7 months before the company's application under this Article.
(5) A resolution that a company be re-registered as a public company may change the company name by deleting the word “company” or the words “and company”, including any abbreviation of them.
F1Words in art. 53(2)(b) inserted (6.4.2007) by Companies Act 2006 (Commencement No. 2, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/1093), arts. 1(3), 6(2), Sch. 4 para. 52 (with art. 11(1))
F2Words in art. 53(3)(b) substituted (6.4.2008) by virtue of Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 117 (with arts. 6, 11, 12)
F3SR 2003/3
54.—(1) This Article applies if shares have been allotted by the company between the relevant balance sheet date and the passing of the special resolution under Article 53, and those shares were allotted as fully or partly paid up as to their nominal value or any premium on them otherwise than in cash.
(2) Subject to the following provisions of this Article, the registrar shall not entertain an application by the company under Article 53 unless beforehand—
(a)the consideration for the allotment has been valued in accordance with Article 118, and
(b)a report with respect to the value of the consideration has been made to the company (in accordance with that Article) during the 6 months immediately preceding the allotment of the shares.
(3) Where an amount standing to the credit of any of the company's reserve accounts, or of its profit and loss account, has been applied in paying up (to any extent) any of the shares allotted to members of the company or any premium on those shares, the amount applied does not count as consideration for the allotment, and accordingly paragraph (2) does not apply to it.
(4) Paragraph (2) does not apply if the allotment is in connection with an arrangement providing for it to be on terms that the whole or part of the consideration for the shares allotted is to be provided by the transfer to the company or the cancellation of all or some of the shares, or of all or some of the shares of a particular class, in another company (with or without the issue to the company applying under Article 53 of shares, or of shares of any particular class, in that other company).
(5) But paragraph (4) does not exclude the application of paragraph (2), unless under the arrangement it is open to all the holders of the shares in the other company in question (or, where the arrangement applies only to shares of a particular class, to all the holders of the other company's shares of that class) to take part in the arrangement.
In determining whether that is the case, shares held by or by a nominee of the company allotting shares in connection with the arrangement, or by or by a nominee of a company which is that company's holding company or subsidiary or a company which is a subsidiary of its holding company, are to be disregarded.
(6) Paragraph (2) does not apply to preclude an application under Article 53, if the allotment of the company's shares is in connection with its proposed merger with another company; that is, where one of the companies concerned proposes to acquire all the assets and liabilities of the other in exchange for the issue of shares or other securities in that one to shareholders of the other, with or without any cash payment to those shareholders.
(7) In this Article—
(a)“arrangement” means any agreement, scheme or arrangement, including an arrangement sanctioned in accordance with [F4section 899 of the Companies Act 2006] (company compromise with creditors and members) or[F5 Article 96 of the Insolvency Order] (liquidator in winding up accepting shares as consideration for sale of a company's property), and
(b)“another company” includes any body corporate and any body to which letters patent have been issued under the [1837 c. 73] Chartered Companies Act 1837.
F4Words in art. 54(7)(a) substituted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 118 (with arts. 6, 11, 12)
55.—(1) For a private company to be re-registered under Article 53 as a public company, the following conditions with respect to its share capital must be satisfied at the time the special resolution under that Article is passed.
(2) Subject to paragraphs (5) to (7)—
(a)the nominal value of the company's allotted share capital must be not less than the authorised minimum, [F6(see Chapter 2 of Part 20 of the Companies Act 2006)] and
(b)each of the company's allotted shares must be paid up at least as to one-quarter of the nominal value of that share and the whole of any premium on it.
(3) Subject to paragraph (5), if any shares in the company or any premium payable on them have been fully or partly paid up by an undertaking given by any person that he or another should do work or perform services (whether for the company or any other person), the undertaking must have been performed or otherwise discharged.
(4) Subject to paragraph (5), if shares have been allotted as fully or partly paid up as to their nominal value or any premium payable on them otherwise than in cash and the consideration for the allotment consists of or includes an undertaking (other than one to which paragraph (3) applies) to the company, then either—
(a)the undertaking must have been performed or otherwise discharged, or
(b)there must be a contract between the company and some person pursuant to which the undertaking is to be performed within 5 years from the time the special resolution under Article 53 is passed.
(5) For the purpose of determining whether paragraphs (2)(b), (3) and (4) are complied with, certain shares in the company may be disregarded; and these are—
(a)subject to paragraph (6), any share which was allotted on or before 31st December 1984, or
(b)any share which was allotted in pursuance of an employees' share scheme and by reason of which the company would, but for this paragraph, be precluded under paragraph (2)(b) (but not otherwise) from being re-registered as a public company.
(6) A share is not be disregarded under paragraph (5)(a) if the aggregate in nominal value of that share and other shares proposed to be so disregarded is more than one-tenth of the nominal value of the company's allotted share capital; but for this purpose the allotted share capital is treated as not including any shares disregarded under paragraph (5)(b).
(7) Any shares disregarded under paragraph (5) are treated as not forming part of the allotted share capital for the purposes of paragraph (2)(a).
F6Words in art. 55(2)(a) inserted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 119 (with arts. 6, 11, 12)
56.—(1) The following paragraphs explain the reference in Article 53(3)(c) to an unqualified report of the company's auditors on the relevant balance sheet.
[F7(2) If the balance sheet was prepared for a financial year of the company, the reference is to an auditors' report stating without material qualification the auditors' opinion that the balance sheet has been properly prepared [F8in accordance with the Companies Act 2006].
(3) If the balance sheet was not prepared for a financial year of the company, the reference is to an auditors' report stating without material qualification the auditors' opinion that the balance sheet has been properly prepared in accordance with [F9the provisions of the Companies Act 2006] which would have applied if it had been so prepared.
For the purposes of an auditors' report under this paragraph [F9the provisions of the Companies Act 2006] shall be deemed to apply with such modifications as are necessary by reason of the fact that the balance sheet is not prepared for a financial year of the company.
(4) A qualification shall be regarded as material unless the auditors state in their report that the matter giving rise to the qualification is not material for the purpose of determining (by reference to the company's balance sheet) whether at the balance sheet date the amount of the company's net assets was not less than the aggregate of its called up share capital and undistributable reserves.
In this paragraph “net assets” and “undistributable reserves” have the meaning given by [F10section 831 of the Companies Act 2006][F11 and “financial year” has the meaning given by section 390 of that Act].]
F8Words in art. 56(2) substituted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 120(2) (with arts. 6, 11, 12)
F9Words in art. 56(3) substituted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 120(3) (with arts. 6, 11, 12)
F10Words in art. 56(4) substituted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 120(4)(a) (with arts. 6, 11, 12)
F11Words in art. 56(4) inserted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 120(4)(b) (with arts. 6, 11, 12)
57.—(1) If the registrar is satisfied, on an application under Article 53, that a company may be re-registered under that Article as a public company, he shall—
(a)retain the application and other documents delivered to him under that Article; and
(b)issue the company with a certificate of incorporation stating that the company is a public company.
(2) The registrar may accept a declaration under Article 53(3)(e)[F12 or a statement under Article 53(3A)] as sufficient evidence that the special resolution required by that Article has been passed and the other conditions of re-registration have been satisfied.
(3) The registrar shall not issue a certificate of incorporation if it appears to him that the court has made an order confirming a reduction of the company's capital which has the effect of bringing the nominal value of the company's allotted share capital below the authorised minimum [F13(see Chapter 2 of Part 20 of the Companies Act 2006)].
(4) Upon the issue to a company of a certificate of incorporation under this Article—
(a)the company by virtue of the issue of that certificate becomes a public company; and
(b)any alterations in the memorandum and articles of association set out in the resolution take effect accordingly.
(5) A certificate of incorporation is conclusive evidence—
(a)that the requirements of this Order in respect of re-registration and of matters precedent and incidental thereto have been complied with; and
(b)that the company is a public company.
F12SR 2003/3
F13Words in art. 57(3) inserted (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b), Sch. 1 para. 121 (with arts. 6, 11, 12)
58.—(1) In their application to unlimited companies, Articles 53 to 57 are modified as follows.
(2) The special resolution required by paragraph (1) of Article 53 must, in addition to the matters mentioned in paragraph (2) of that Article—
(a)state that the liability of the members is to be limited by shares, and what the company's share capital is to be; and
(b)make such alterations in the company's memorandum as are necessary to bring it in substance and in form into conformity with the requirements of this Order with respect to the memorandum of a company limited by shares.
(3) The certificate of incorporation issued under paragraph (1) of Article 57 shall, in addition to containing the statement required by sub-paragraph (b) of that paragraph, state that the company has been incorporated as a company limited by shares; and—
(a)the company by virtue of the issue of the certificate becomes a public company so limited; and
(b)the certificate is conclusive evidence of the fact that it is such a company.
59.—(1) Subject as follows, a company which is registered as limited may be re-registered as unlimited in pursuance of an application in that behalf complying with the requirements of this Article.
(2) A company is excluded from re-registering under this Article if it is limited by virtue or re-registration under Article 119 of the Order of 1978 or Article 61 of this Order.
(3) A public company cannot be re-registered under this Article; nor can a company which has previously been re-registered as unlimited.
(4) An application under this Article must be in the prescribed form and be signed by a director or the secretary of the company, and be lodged with the registrar, together with the documents specified in paragraph (8).
(5) The application must set out such alterations in the company's memorandum as—
(a)if it is to have a share capital, are requisite to bring it (in substance and in form) into conformity with the requirements of this Order with respect to the memorandum of a company to be formed as an unlimited company having a share capital; or
(b)if it is not to have a share capital, are requisite in the circumstances.
(6) If articles of association have been registered, the application must set out such alterations in them as—
(a)if the company is to have a share capital, are requisite to bring its articles (in substance and in form) into conformity with the requirements of this Order with respect to the articles of a company to be formed as an unlimited company having a share capital; or
(b)if the company is not to have a share capital, are requisite in the circumstances.
(7) If articles of association have not been registered, the application must have annexed to it, and request the registration of, printed articles; and these must, if the company is to have a share capital, comply with the requirements mentioned in paragraph (6)(a) and, if not, be articles appropriate to the circumstances.
(8) The documents to be lodged with the registrar are—
(a)the prescribed form of assent to the company's being registered as unlimited, subscribed by or on behalf of all the members of the company;
(b)[F14subject to paragraph (8A),] a statutory declaration made by the directors of the company—
(i)that the persons by whom or on whose behalf the form of assent is subscribed constitute the whole membership of the company, and
(ii)that if any of the members have not subscribed that form themselves, that the directors have taken all reasonable steps to satisfy themselves that each person who subscribed it on behalf of a member was lawfully empowered to do so;
(c)a printed copy of the memorandum incorporating the alterations in it set out in the application; and
(d)if articles of association have been registered, a printed copy of them incorporating the alterations set out in the application.
[F14(8A) In place of the lodging of a statutory declaration under sub-paragraph (b) of paragraph (8), there may be delivered to the registrar using electronic communications a statement made by the directors of the company as to the matters set out in heads (i) and (ii) of that sub-paragraph.
(8B) Any person who makes a false statement under paragraph (8A) which he knows to be false or does not believe to be true is liable to imprisonment or a fine, or both.]
(9) For the purposes of this Article—
(a)subscription to a form of assent by the personal representative of a deceased member of a company is deemed a subscription by him; and
(b)the assignees or trustee in bankruptcy of a member of a company is, to the exclusion of that member, deemed a member of the company.
F14SR 2003/3
60.—(1) The registrar shall retain the application and other documents lodged with him under Article 59 and shall—
(a)if articles of association are annexed to the application, register them; and
(b)issue to the company a certificate of incorporation appropriate to the status to be assumed by it by virtue of that Article.
(2) On the issue of the certificate—
(a)the status of the company, by virtue of the issue, is changed from limited to unlimited; and
(b)the alterations in the memorandum set out in the application and (if articles of association have been previously registered) any alterations to the articles so set out take effect as if duly made by resolution of the company; and
(c)the provision of this Order apply accordingly to the memorandum and articles as altered by virtue of Article 59.
(3) The certificate is conclusive evidence that the requirements of Article 59 in respect of re-registration and of matters precedent and incidental to it have been complied with, and that the company was authorised to be re-registered under this Order in pursuance of that Article and was duly so re-registered.
61.—(1) Subject as follows, a company which is registered as unlimited may be re-registered as limited if a special resolution that it should be so re-registered is passed, and the requirements of this Article are complied with in respect of the resolution and otherwise.
(2) A company cannot under this Article be re-registered as a public company; and a company is excluded from re-registering under it if it is unlimited by virtue of re-registration under Article 118 of the Order of 1978 or Article 59 or this Order.
(3) The special resolution must state whether the company is to be limited by shares or by guarantee and—
(a)if it is to be limited by shares, must state what the share capital is to be and provide for the making of such alterations in the memorandum as are necessary to bring it (in substance and in form) into conformity with the requirements of this Order with respect to the memorandum of a company so limited, and such alterations in the articles of association as are requisite in the circumstances;
(b)if it is to be limited by guarantee, must provide for the making of such alterations in its memorandum and articles as are necessary to bring them (in substance and in form) into conformity with the requirements of this Order with respect to the memorandum and articles of a company so limited.
(4) F15. . . an application for the company to be re-registered as limited, framed in the prescribed form and signed by a director or by the secretary of the company, must be lodged with the registrar, together with the necessary documents, not earlier than the day on which the copy of the resolution forwarded [F16under section 30 of the Companies Act 2006] is received by him.
(5) The documents to be lodged with the registrar are—
(a)a printed copy of the memorandum as altered in pursuance of the resolution; and
(b)a printed copy of the articles as so altered.
(6) This Article does not apply in relation to the re-registration of an unlimited company as a public company under Article 53.
F15Words in art. 61(4) omitted (1.10.2007) by virtue of Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 17(2)(a) (with art. 12)
F16Words in art. 61(4) substituted (1.10.2007) by Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 17(2)(b) (with arts. 12)
62.—(1) The registrar shall retain the application and other documents lodged with him under Article 61, and shall issue to the company a certificate of incorporation appropriate to the status to be assumed by the company by virtue of that Article.
(2) On the issue of the certificate—
(a)the status of the company is, by virtue of the issue, changed from unlimited to limited; and
(b)the alterations in the memorandum specified in the resolution and the alterations in, and additions to, the articles so specified take effect.
(3) The certificate is conclusive evidence that the requirements of Article 61 in respect of re-registration and of matters precedent and incidental to it have been complied with, and that the company was authorised to be re-registered in pursuance of that Article and was duly so re-registered.
63.—(1) A public company may be re-registered as a private company if—
(a)a special resolution complying with paragraph (2) that it should be so re-registered is passed and has not been cancelled by the court under Article 64;
(b)an application for the purpose in the prescribed form and signed by a director or the secretary of the company is delivered to the registrar, together with a printed copy of the memorandum and articles of the company as altered by the resolution; and
(c)the period during which an application for the cancellation of the resolution under Article 64 may be made has expired without any such application having been made; or
(d)where such an application has been made, the application has been withdrawn or an order has been made under Article 64(5) confirming the resolution and a copy of that order has been delivered to the registrar.
(2) The special resolution must alter the company's memorandum so that it no longer states that the company is to be a public company and must make such other alterations in the company's memorandum and articles as are requisite in the circumstances.
(3) A company cannot under this Article be re-registered otherwise than as a company limited by shares or by guarantee.
64.—(1) Where a special resolution by a public company to be re-registered under Article 63 as a private company has been passed, an application may be made to the court for the cancellation of that resolution.
(2) The application may be made—
(a)by the holders of not less in the aggregate than 5 per cent. in nominal value of the company's issued share capital or any class thereof;
(b)if the company is not limited by shares, by not less than 5 per cent. of its members; or
(c)by not less than 50 of its members;
but not by a person who has consented to or voted in favour of the resolution.
[F17(2A) For the purposes of paragraph (2)(a), any of the company's issued share capital held as treasury shares must be disregarded.]
(3) The application must be made within 28 days after the passing of the resolution and may be made on behalf of the persons entitled to make the application by such one or more of their number as they may appoint in writing for the purpose.
(4) If such an application is made, the company shall forthwith give notice in the prescribed form of that fact to the registrar.
(5) On the hearing of the application, the court shall make an order either cancelling or confirming the resolution and—
(a)may make that order on such terms and conditions as it thinks fit, and may (if it thinks fit) adjourn the proceedings in order that an arrangement may be made to the satisfaction of the court for the purchase of the interests of dissentient members; and
(b)may give such directions and make such orders as it thinks expedient for facilitating or carrying into effect any such arrangement.
(6) The court's order may, if the court thinks fit, provide for the purchase by the company of the shares of any of its members and for the reduction accordingly of the company's capital, and may make such alterations in the company's memorandum and articles as may be required in consequence of that provision.
(7) The company shall, within 15 days from the making of the court's order, or within such longer period as the court may at any time by order direct, deliver to the registrar an office copy of the order.
(8) If the court's order requires the company not to make any, or any specified, alteration in its memorandum or articles, the company has not then power without the leave of the court to make any such alteration in breach of that requirement.
(9) An alteration in the memorandum or articles made by virtue of an order under this Article, if not made by resolution of the company, is of the same effect as if duly made by resolution; and this Order applies accordingly to the memorandum or articles as so altered.
(10) A company which fails to comply with paragraph (4) or paragraph (7), and any officer of it who is in default, is liable to a fine and, for continued contravention, to a daily default fine.
F17SR 2004/275
65.—(1) If the registrar is satisfied that a company may be re-registered under Article 63, he shall—
(a)retain the application and other documents delivered to him under that Article; and
(b)issue the company with a certificate of incorporation appropriate to a private company.
(2) On the issue of the certificate—
(a)the company by virtue of the issue becomes a private company; and
(b)the alterations in the memorandum and articles set out in the resolution under Article 63 take effect accordingly.
(3) The certificate is conclusive evidence—
(a)that the requirements of Article 63 in respect of re-registration and of matters precedent and incidental to it have been complied with; and
(b)that the company is a private company.
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