(1) A reserve arising from the reduction of a company's share capital is not distributable, subject to any provision made by order under this section.
(2) The Secretary of State may by order specify cases in which -
(a) the prohibition in subsection (1) does not apply, and
(b) the reserve is to be treated for the purposes of Part 23 (distributions) as a realised profit.
(3) An order under this section is subject to affirmative resolution procedure.