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Section 654: Treatment of reserve arising from reduction of capital

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 17: A company's share capital — Chapter 11: Miscellaneous and supplementary provisions

A reserve arising from the reduction of a company's share capital is not distributable, subject to any provision made by order under this section.

The Secretary of State may by order specify cases in which—

the prohibition in subsection (1) does not apply, and
the reserve is to be treated for the purposes of Part 23 (distributions) as a realised profit.

An order under this section is subject to affirmative resolution procedure.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.