Two Types of Capital Reductions Not Expressly Authorised by the Companies

question 17

Multiple Choice

Two types of capital reductions not expressly authorised by the Companies Act are selective reductions and equal (access) reductions.Under the Act the shareholder approval requirements are:

• A)for both types of reduction, approved must be by a special resolution
• B)equal reductions require ordinary resolution and selective reductions can be approved by a resolution by all ordinary shareholders
• C)equal reductions require a resolution of all ordinary shareholders and selective reductions a special resolution by those shareholders whose shares are subject to the reduction
• D)no shareholder approval process is required

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