976.Section 656 restates section 142(1) and (3) of the 1985 Act. It sets out the procedure that must be followed where the net assets of a public company fall below half (or less) of the company’s called up share capital. Subsection (4) imposes liability on any director who knowingly authorised or permitted a failure to call a meeting as required by this section.
Commentary Part 17: a Company’s Share Capital Chapter 11: Miscellaneous and Supplementary Provisions Section 656: Public companies: duty of directors to call meeting on serious loss of capital