4.12 Reduction of Share Capital

Reduction — the paid-up capital's shrink: returning capital to members, extinguishing uncalled liability, or writing off lost capital. The danger: the creditors' cushion thins — hence the protection procedure: the special resolution + the creditors' safeguard (notice, objections, satisfaction or court/authority sanction — the Act's discipline) + the OCR/court registration; the creditors' objection may force security or payment. Reduction is capital-maintenance's regulated exception — never a disguised distribution.