Part 17A company’s share capital
Chapter 11Miscellaneous and supplementary provisions
654Treatment 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.