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Question 1 of 16business law practice
A private company limited by shares has issued 1,000 ordinary shares of £1 each, all fully paid. The company wishes to reduce its share capital by canceling 200 shares held by a departing member and repaying £200. The company is solvent and has distributable reserves of £50,000. The directors have resolved to proceed with the reduction. The articles permit capital reductions. What procedure must the company follow to effect this reduction?