Section 14Part 2 — Constitution and Incorporation of Companies and AssociationsNot Yet In Force
Registration of solvency statement and minute of reduction
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This section has not been brought into force.
It was enacted by Parliament but awaits a commencement order before it becomes operative law.
Amendment: LG13/S2
Pending changes
Adds new section for reduction of capital supported by a solvency statement.
Adds new section for registration of solvency statement and minute of reduction.
Where a reduction of capital is supported by a solvency statement under section 14A, the company shall w ithin fifteen days after the special resolution for reducing share capital is passed, deliver to the Registrar —
a copy of the solvency statement; and
a minute showing in respect of the company, the information specified in subsection
. (2) The minute referred to under subsection (1)(b) shall state with respect to the company’s reduction of capital by the special resolution for reducing share capital —
the amount of share capital of the company;
the number of shares into which the share capital is to be divided and the amount of each share; and
the amount, if any, deemed to be paid up on each share.
The Registrar, on receipt of the copy of the solvency statement and the minute in accor dance with subsections (1) and (2), shall —
register the solvency statement made under section 14A and the minute; and
issue to the company, a certificate stating that the solvency statement made under section 14A and the minute have been regis tered.
The Registrar shall publish by notice in the Gazette the registration of the solvency statement made under section 14A and the minute.
Where a company fails to deliver the items required under subsection (1) to the Registrar within fifte en days after the passing of the special resolution for reducing share capital, the Registrar shall not register the items.
Where the Registrar, in accordance with subsection (5), does not register the items, the company may apply to the Court, by wa y of petition, for an order confirming the reduction of share capital under section 15(1).
A certificate issued under subsection (3)(b) shall be conclusive evidence that all the requirements of this Act with respect to reduction of share capital have been complied with and that the share capital of the company is as stated in the minute.
The minute, when registered under subsection (3)(a), shall be deemed to be substituted for the corresponding part of the memorandum of association and shall be valid and alterable as if it had been contained in the memorandum of association on the effective date of the reduction of capital.
The special resolution for reducing share capital shall take effect on the date of registration of the solvency statem ent made under section 14A and the minute.