Section 56
of International Business Companies Order, 2000
Section 56
(1)
Subject to any relevant modification and to subsections (2) and (3), by a resolution of the members the capital of an IBC may be –
(a)
increased by transferring an amount out of the surplus of the IBC to capital; or
(b)
reduced by transferring an amount out of the capital of the IBC to surplus.
(2)
In the case of an IBC limited by shares, no reduction of capital shall be effected that reduces the capital of the IBC to an amount which, as the case may require –
(a)
is less than the aggregate par value of all shares with par value which are either outstanding or held as treasury shares; or
(b)
is less than the aggregate of the amounts designated as capital of all shares without par value which are either outstanding or preference shares held by the IBC as treasury shares.
(3)
No reduction of capital shall be effected under subsection (1) unless the directors determine that, immediately after the reduction, the solvency conditions will be fulfilled.
Dividend may be declared.