... the company, they are the property of the shareholders.1 The shareholders will then vote in the general meeting, which will only be successful if the votes are 75% and higher of the shareholders who are at liberty to and do attend that are in favour of the reduction, of which then the application must proceed to the court and be authorised. This is when the reduction may become operative. For Laura Plc's application to be lawful, it is required by the court under section 135(1) that an officer from the company must state its reasons for willing to reduce its capital and will only authorise the application if the company is able to pay off its debts Poole v National Bank of China [1907] AC 229. 2 Preference shareholders may or may not benefit from voting rights.3 Therefore, ordinary shareholders are more likely to be the majority in class at the ...

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