C1Part 17A company's share capital
Chapter 10Reduction of share capital
Private companies: reduction of capital supported by solvency statement
642Reduction of capital supported by solvency statement
1
A resolution for reducing share capital of a private company limited by shares is supported by a solvency statement if—
a
the directors of the company make a statement of the solvency of the company in accordance with section 643 (a “solvency statement”) not more than 15 days before the date on which the resolution is passed, and
b
the resolution and solvency statement are registered in accordance with section 644.
2
Where the resolution is proposed as a written resolution, a copy of the solvency statement must be sent or submitted to every eligible member at or before the time at which the proposed resolution is sent or submitted to him.
3
Where the resolution is proposed at a general meeting, a copy of the solvency statement must be made available for inspection by members of the company throughout that meeting.
4
The validity of a resolution is not affected by a failure to comply with subsection (2) or (3).
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2