Which of the following is NOT a valid method that a company may use to reduce its share capital according to the Companies Act 2006?
A、Pay off part of paid-up share capital out of surplus profits
B、Extinguish liability on partly paid shares
C、Buy back fully paid up share capital from shareholders using cash not surplus profit
D、Cancel paid-up share capital that is no longer represented by assets
A、Pay off part of paid-up share capital out of surplus profits
B、Extinguish liability on partly paid shares
C、Buy back fully paid up share capital from shareholders using cash not surplus profit
D、Cancel paid-up share capital that is no longer represented by assets
【参考答案及解析】
Buying back shares using cash not surplus profit is not a method of reducing share capital permitted by the Companies Act. The other options are valid methods of reducing share capital.
Buying back shares using cash not surplus profit is not a method of reducing share capital permitted by the Companies Act. The other options are valid methods of reducing share capital.