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However the solvency statement does protect the creditors of the company by requiring that all the directors give the solvency statement and take all the company’s liabilities into account (including prospective and contingent liabilities) when doing so.

Therefore, if one or more of the directors is unable or unwilling to make the solvency statement, the company will not be able to use the Solvency Statement Procedure for its reduction of capital and will need to use the court approved procedure (unless the relevant directors who object resign prior to the making of the statement).• The content of the solvency statement is prescribed by the companies act.

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It is a form of courtship, consisting of social activities done by the couple, either alone or with others.

Note that Companies House can take up to 7 working days to register the documents.

5 How is the reserve created by the share capital reduction treated?

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