What type of statement must a private company file when reducing share capital?

When a private company decides to reduce its share capital, it is required to file a solvency statement. This statement serves a critical purpose; it ensures that the company is able to pay its debts as they fall due after the reduction is executed. The solvency statement must be prepared by the directors of the company and provides assurance that the company can continue its operations and meet its liabilities despite the reduction in capital.

In the context of share capital reduction, the solvency statement is vital as it protects the interests of creditors and shareholders alike. It is an affirmation of the company's financial health and indicates that the decision to reduce share capital is made with consideration of the company's ongoing viability.

The other types of financial statements mentioned, such as profit and loss statements, cash flow statements, or balance sheets, do not specifically address the requirements related to share capital reduction in the same manner. While these documents may be part of the broader financial reporting for a company, they do not fulfill the specific legal requirement to demonstrate solvency in the context of capital reduction.