Part 7Re-registration as a means of altering a company's status
Public company becoming private
98Application to court to cancel resolution
(1)
Where a special resolution by a public company to be re-registered as a private limited company has been passed, an application to the court for the cancellation of the resolution may be made—
(a)
by the holders of not less in the aggregate than 5% in nominal value of the company's issued share capital or any class of the company's issued share capital (disregarding any shares held by the company as treasury shares);
(b)
if the company is not limited by shares, by not less than 5% of its members; or
(c)
by not less than 50 of the company's members;
but not by a person who has consented to or voted in favour of the resolution.
(2)
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 it by such one or more of their number as they may appoint for the purpose.
(3)
On the hearing of the application the court shall make an order either cancelling or confirming the resolution.
(4)
The court may—
(a)
make that order on such terms and conditions as it thinks fit,
(b)
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
(c)
give such directions, and make such orders, as it thinks expedient for facilitating or carrying into effect any such arrangement.
(5)
The court's order may, if the court thinks fit—
(a)
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
(b)
make such alteration in the company's articles as may be required in consequence of that provision.
(6)
The court's order may, if the court thinks fit, require the company not to make any, or any specified, amendments to its articles without the leave of the court.