Part 17A company’s share capital

Chapter 8Alteration of share capital

Redenomination of share capital

628Redenomination reserve

1

The amount by which a company’s share capital is reduced under section 626 (reduction of capital in connection with redenomination) must be transferred to a reserve, called “the redenomination reserve”.

2

The redenomination reserve may be applied by the company in paying up shares to be allotted to members as fully paid bonus shares.

3

Subject to that, the provisions of the Companies Acts relating to the reduction of a company’s share capital apply as if the redenomination reserve were paid-up share capital of the company.