Capital maintenance (UK company law)

The rules protect the company’s capital through requirements governing distributions, reduction of capital and related transactions. A distribution is generally limited to accumulated realised profits less relevant realised losses; further public-company and relevant-account rules apply. A capital reduction requires an applicable statutory procedure: for example a private company may use a special resolution supported by a solvency statement, while a court-confirmed route is also available. Rules and exceptions must be checked for the transaction.