Companies Act 2014 section 1084

Limitation on reduction by a PLC of its company capital

Section 1084 prevents a public limited company from reducing its company capital below the statutory authorised minimum.

• A PLC must not reduce its company capital below the authorised minimum level
• The general rules on capital reduction in section 84 must be read subject to this restriction
• Section 84 frames the ability to reduce share capital as a positive entitlement rather than an exception to a prohibition
• This provision originates from section 17(1) of the Companies (Amendment) Act 1983