654 Treatment of reserve arising from reduction of capital
Companies Act 2006 | Legislation

Chapter 11
Miscellaneous and Supplementary Provisions

654  Treatment of reserve arising from reduction of capital

(1)     A reserve arising from the reduction of a company's share capital is not distributable, subject to any provision made by order under this section.

(2)     The Secretary of State may by order specify cases in which—

(a)     the prohibition in subsection (1) does not apply, and

(b)     the reserve is to be treated for the purposes of Part 23 (distributions) as a realised profit.

(3)     An order under this section is subject to affirmative resolution procedure.

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