- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made).
3.—(1) This regulation applies for either of the purposes in paragraphs (2) and (3).
(2) The first purpose is to determine whether, for the purposes of section 139 of the 1985 Act or Article 149 of the 1986 Order, a court order under section 137 of the 1985 Act or Article 147 of the 1986 Order has the effect of bringing the nominal value of a public company’s allotted share capital below the authorised minimum.
(3) The second purpose is to determine whether, for the purposes of section 146(2)(b) of the 1985 Act or Article 156(2)(b) of the 1986 Order, the cancellation of a public company’s shares under that section or that Article will have the effect of bringing the nominal value of the company’s allotted share capital below the authorised minimum.
(4) This regulation applies only where the company has or will have allotted share capital denominated in more than one currency, taking account (where the purpose is that in paragraph (2)) of the effect of the court order or (where the purpose is that in paragraph (3)) of the cancellation of the shares.
(5) The nominal value of a public company’s allotted share capital is to be treated as being below the authorised minimum if—
(a)the sterling value is less than £50,000; and
(b)the euro value is less than €65,600.
(6) The “sterling value” is the sum in sterling of—
(a)the nominal value of the company’s allotted share capital denominated in sterling;
(b)the nominal value of the company’s allotted share capital denominated in euros if it were to be converted into sterling at the appropriate spot rate of exchange; and
(c)the nominal value of the company’s allotted share capital denominated in a currency other than sterling or euros if it were to be converted into sterling at the appropriate spot rate of exchange.
(7) The “euro value” is the sum in euros of—
(a)the nominal value of the company’s allotted share capital denominated in euros;
(b)the nominal value of the company’s allotted share capital denominated in sterling if it were to be converted into euros at the appropriate spot rate of exchange; and
(c)the nominal value of the company’s allotted share capital denominated in a currency other than sterling or euros if it were to be converted into euros at the appropriate spot rate of exchange.
(8) Regulation 4 applies to determine the appropriate spot rate of exchange.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: