Company Law Bill [HL]

moved Amendment No. A94:"Page 284, line 8, at end insert—" ““(   )   The company must also deliver to the registrar, within 15 days after the resolution is passed, a statement by the directors confirming that the reduction in share capital is in accordance with section 582(4) (reduction of capital not to exceed 10% of nominal value of allotted shares immediately after reduction).”” The noble Lord said: In moving Amendment No. A94, I shall speak also to Amendment No. A95. We are concerned here with the notice to the registrar concerning the reduction of capital in connection with a redenomination. Subsection (5) states:"““The reduction of the capital is not effective until those documents are registered””." My reading of this is that ““those documents”” are the ones referred to or stated in subsections (1) to (3). Subsection (1) covers the notice, subsection (2) the statement of capital, and subsection (3) the requirement to state the contents of the statement of capital. Subsection (6), however, requires the company to deliver to the registrar within 15 days of the passing of the resolution a further statement by the directors confirming that the reduction of capital is in accordance with Section 582(4) requiring that the reduction of capital,"““must not exceed 10% of the nominal value of the company’s allotted share capital immediately after the reduction””." Surely it would make more sense for this statement to be among those documents required by subsection (5) for the reduction of capital to be effective. This amendment simply reorders the subsections to achieve greater clarity and follow a more logical, commercial and practical sequence. I beg to move.