583. Reduction of capital supported by solvency statement
(1) A resolution for reducing share capital of a private company limited by shares is supported by a solvency statement if-
(a) the directors of the company make a statement of the solvency of the company in accordance with section 584 (a “solvency statement”) not more than 15 days before the date on which the resolution is passed, and
(b) the resolution and solvency statement are registered in accordance with section 585.
(2) Where the resolution is proposed as a written resolution, a copy of the solvency statement must be sent or submitted to every eligible member at or before the time at which the proposed resolution is sent or submitted to him.
(3) Where the resolution is proposed at a general meeting, a copy of the solvency statement must be made available for inspection by members of the company throughout that meeting.
(4) The validity of a resolution is not affected by a failure to comply with subsection (2) or (3).