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Capital and financing

Procedure for public companies:

Pass a special resolution

Apply to the court to confirm the special resolution.

If reduction involves one of the first two methods above, court must require
company to settle a list of creditors entitled to object.

The court must not confirm the reduction until it is satisfied that all creditors have
either consented to the reduction or had their debts discharged or secured.

The company must file documents with the Registrar. If the share capital of a
public company falls below £50,000, it must re-register as a private company.

Simplified procedure for private companies:

Pass a special resolution supported by a solvency statement.

The solvency statement is a statement by each of the directors that the company
will be able to meet its debts within the following year.

A solvency statement made without reasonable grounds is an offence punishable
by fine and/or imprisonment.

Copies of the resolution, solvency statement and a statement of capital must be
filed with the Registrar within 15 days.

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