§ 78A — Preliminary

78A.—(1) A company may reduce its share capital under the provisions of this Division in any way and, in particular, do all or any of the following:(a)

extinguish or reduce the liability on any of its shares in respect of share capital not paid up;

(b)

cancel any paid‑up share capital which is lost or unrepresented by available assets;

(c)

return to shareholders any paid‑up share capital which is more than it needs.

(2) A company may not reduce its share capital in any way except by a procedure provided for it by the provisions of this Division.

(3) A company’s constitution may exclude or restrict any power to reduce share capital conferred on the company by this Division.[36/2014]

(4) In this Division —“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:(a)

the amount of the company’s share capital that is thereby reduced;

(b)

the number of shares that are thereby cancelled;

“resolution date”, in relation to a resolution, means the date when the resolution is passed.[36/2014]

(5) This Division does not apply to an unlimited company, and does not preclude such a company from reducing in any way its share capital.

(5A) This Division does not apply to any redemption of preference shares issued by a company under section 70(1) which results in a reduction in the company’s share capital.[36/2014]

(6) This Division does not apply to the purchase or acquisition or proposed purchase or acquisition by a company of its own shares in accordance with sections 76B to 76G.

—(1) A company may reduce its share capital under the provisions of this Division in any way and, in particular, do all or any of the following:(a)

extinguish or reduce the liability on any of its shares in respect of share capital not paid up;

(b)

cancel any paid‑up share capital which is lost or unrepresented by available assets;

(c)

return to shareholders any paid‑up share capital which is more than it needs.

(2) A company may not reduce its share capital in any way except by a procedure provided for it by the provisions of this Division.

(3) A company’s constitution may exclude or restrict any power to reduce share capital conferred on the company by this Division.[36/2014]

(4) In this Division —“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:(a)

the amount of the company’s share capital that is thereby reduced;

(b)

the number of shares that are thereby cancelled;

“resolution date”, in relation to a resolution, means the date when the resolution is passed.[36/2014]

(5) This Division does not apply to an unlimited company, and does not preclude such a company from reducing in any way its share capital.

(5A) This Division does not apply to any redemption of preference shares issued by a company under section 70(1) which results in a reduction in the company’s share capital.[36/2014]

(6) This Division does not apply to the purchase or acquisition or proposed purchase or acquisition by a company of its own shares in accordance with sections 76B to 76G.