(1) Where the net assets of a public company are half or less of its called-up share capital, the directors must call a general meeting of the company to consider whether any, and if so what, steps should be taken to deal with the situation.
(2) They must do so not later than one month from the earliest day on which that fact is known to a director of the company.
(3) The meeting must be convened for a date not later than 56 days from that day.
(4) If there is a failure to convene a meeting as required by this section, each of the directors of the company who-
(a) knowingly authorises or permits the failure, or
(b) after the period during which the meeting should have been convened, knowingly authorises or permits the failure to continue,
commits a contravention of these Regulations.
(5) A person who commits a contravention of this section is liable to a fine of up to level 8.
(6) Nothing in this section authorises the consideration at a meeting convened in pursuance of subsection (1) of any matter that could not have been considered at that meeting apart from this section.
