Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Capital Maintenance And.. Dividend Law

    Uploaded by

    adnan
    This document summarizes the process and requirements for reducing share capital in public and private limited companies. For public companies, a special resolution and court approval are required, while private companies only need a special resolution supported by a solvency statement from directors. Reasons for reducing capital include reducing liabilities on partly-paid shares and returning excess capital. Methods include reducing the nominal value of shares or repaying part of the paid-up value. The court's primary concern is the company's ability to pay debts, and if satisfied, will confirm the reduction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Capital Maintenance And.. Dividend Law

    Uploaded by

    adnan
    28 views8 pages
    This document summarizes the process and requirements for reducing share capital in public and private limited companies. For public companies, a special resolution and court approval are required, while private companies only need a special resolution supported by a solvency statement from directors. Reasons for reducing capital include reducing liabilities on partly-paid shares and returning excess capital. Methods include reducing the nominal value of shares or repaying part of the paid-up value. The court's primary concern is the company's ability to pay debts, and if satisfied, will confirm the reduction.

    Original Description:

    m

    Original Title

    Capital Maintenance and.. Dividend Law

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document summarizes the process and requirements for reducing share capital in public and private limited companies. For public companies, a special resolution and court approval are required, while private companies only need a special resolution supported by a solvency statement from directors. Reasons for reducing capital include reducing liabilities on partly-paid shares and returning excess capital. Methods include reducing the nominal value of shares or repaying part of the paid-up value. The court's primary concern is the company's ability to pay debts, and if satisfied, will confirm the reduction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views8 pages

    Capital Maintenance And.. Dividend Law

    Uploaded by

    adnan
    This document summarizes the process and requirements for reducing share capital in public and private limited companies. For public companies, a special resolution and court approval are required, while private companies only need a special resolution supported by a solvency statement from directors. Reasons for reducing capital include reducing liabilities on partly-paid shares and returning excess capital. Methods include reducing the nominal value of shares or repaying part of the paid-up value. The court's primary concern is the company's ability to pay debts, and if satisfied, will confirm the reduction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8

    Capital Maintenance

    Reduction of share capital


    Public Companies
    i:pass a special resolution
    ii:Apply to court
    iii:File doc to registrar

    Private Companies
    i:special resolution (solvancy statement)company wil able to pay it's debts
    within a year
    ii:Both resolution and solvancy statement filed to registrar within 15 days

    A limited company
    is permitted without restriction to cancel unissued
    shares

    limited company with a share capital


    wishes to reduce its issued share capital

    i:use article power or amend the article by special


    resolution

    ii: or obtail court permission

    A private company
    need not apply to the court if it supports its special
    resolution with a solvency statement.(declaration by
    directors)

    company may reduce its capital for


    following reasons
    Reduce or cancel liabilities on partlypaid shares,
    Return capital in excess of the company's needs,

    Method of reduce Share capital


    Reduce Liability On Partly Paid Shares
    if paid of 75p of 1$

    then reduce nominal value to 75p

    Pay off part of paid-up share


    reduces nominal value of fully paid shares from 1 to
    70p and repays this amount to shareholders

    Role of the court


    *first concern is the effect of the reduction on the
    company's ability to pay its debts

    *If the court is satisfied that the reduction is in order, it


    confirms the reduction

    Distributing dividends
    Power to declare dividends
    its often included in articles

    i:company my declared it in G.M


    ii: No dividend may exceed the amount recommended
    by the directors who have an implied power

    You might also like