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Posted by / 04-Nov-2020 09:58

Note that Companies House can take up to 7 working days to register the documents.5 How is the reserve created by the share capital reduction treated?• An offence is committed by a director if he makes a solvency statement without reasonable grounds for the opinions expressed in it.The maximum penalty for each director in default is imprisonment for a term not exceeding two years or an unlimited fine (or both).3.1 Special resolution to be passed by the shareholders of the company• If the special resolution is passed as a written resolution, the solvency statement (see below) must be sent with it to each shareholder entitled to vote on it (otherwise an offence is committed by the company and its officers).• If the special resolution is proposed at a general meeting, the supporting solvency statement must be available for inspection throughout that general meeting.

If users have queries on any aspect of the requirements contained within this guide, or any related matter, they should contact their contract manager or relevant operating area in the first instance.Ensuring the safety of our clients is our top priority. For more information about the terms of your profile’s extended visibility, click here.Profiles are moderated and your personal data is protected. For any complaints and enquiries you may contact us here.However the solvency statement does protect the creditors of the company by requiring that all the directors give the solvency statement and take all the company’s liabilities into account (including prospective and contingent liabilities) when doing so.Therefore, if one or more of the directors is unable or unwilling to make the solvency statement, the company will not be able to use the Solvency Statement Procedure for its reduction of capital and will need to use the court approved procedure (unless the relevant directors who object resign prior to the making of the statement).• The content of the solvency statement is prescribed by the companies act.

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