What is a necessary document for private companies when reducing share capital?

For private companies in the UK, when they decide to reduce share capital, one of the necessary documents involved in this process is the statement of capital. This document outlines the company's share structure and provides detailed information about the number of shares, their nominal value, and the capital that will remain after the reduction. This is essential for ensuring that all shareholders and regulatory bodies are aware of the changes being made to the company's capital structure.

The statement of capital serves various purposes, including confirming compliance with statutory requirements and providing a clear record of the equity base of the company following the reduction. The requirement for such documentation is enshrined in company law, which mandates that companies maintain transparency regarding their financial structure, especially during significant changes like capital reductions.

Other options provided, such as a new business model, financial summary, and investment proposal, while potentially useful in a broader business context, do not fulfill the specific legal obligations associated with reducing share capital. They do not provide the necessary formal declaration of the changes made to the share capital structure that the statement of capital does.