Which document is necessary for a public company when reducing share capital?

When a public company wishes to reduce its share capital, it is required to prepare a new statement of capital. This document outlines the company’s updated share structure, including the total number of shares in issue, the aggregate nominal value of those shares, and the details of any shares that have been cancelled or reduced. It provides important information to shareholders and regulatory authorities about the changes enacted during the reduction process.

This statement is integral to maintaining transparency and compliance with legal regulations governing capital reductions. The share capital reduction process must comply with the requirements set out in company law, and the new statement of capital serves as an official record of the company's capital position following the reduction. This ensures that shareholders are aware of the company's financial status and that the company adheres to the necessary legal formalities.

In contrast, the other options do not serve this specific purpose. A statement of retained earnings reflects accumulated profits or losses but does not detail changes in share capital. An annual report consolidates a company's overall performance and financial status over a year, including share capital information, but it does not specifically address the share capital reduction process. A business plan, while essential for outlining future strategy and operations, does not pertain directly to share capital matters. Therefore, the new statement of