Regulation 2 Valuation

For paragraph (3) of regulation 23 of the 1994 Regulations (valuation), substitute—

“(3)

Notwithstanding regulation 60(2) below, where a company has issued cumulative preference shares, liabilities in respect of such shares may be left out of account, in aggregate up to 50 per cent. of the required margin of solvency save that liabilities in respect of shares which are redeemable for the purposes of section 159 of the Companies Act 1985^f1 may be left out of account, in aggregate only up to 25 per cent. of the required margin of solvency.”.