A PLC must cancel shares that have been forfeited, surrendered or acquired in various circumstances described in Section 662 of the Companies Act 2006. PLC stands for public limited company. Generally, this is done within three years. In some cases, it is done within one year.
Normally, your PLC can reduce its capital by the nominal value of the cancelled shares. Unless the shares or your PLC’s interest in them is disposed of in some other way.
On the other hand, your directors may reduce your PLC’s capital without a special resolution approved by the court. In this case, your directors must deliver the form SH07 with the statement of capital within one month of the event to Companies House. You must also include your company shares information in your confirmation statement.
Share capital below authorised minimum for a PLC
Above all, your PLC must re-register as a private limited company if your PLC cancel shares resulted in share capital falls below the minimum share capital of a PLC.
The time limit for re-registration is the same as that for the cancellation of your company’s shares.