What must a public company do if the nominal value of its issued shares falls below £50,000?

A public company must register as a private company if the nominal value of its issued shares falls below £50,000. This requirement stems from the legal framework governing companies in the UK, particularly the Companies Act 2006. A public company is required to have a minimum share capital of £50,000, and if this threshold is not met due to the decrease in the nominal value of the issued shares, the company may no longer be able to maintain its status as a public entity.

Once this minimum capital requirement is not satisfied, the company must initiate the process to reclassify itself as a private limited company, which does not have the same capital requirements and allows for different governance structures. This transition protects creditors and ensures the company can operate within the confines of the law.

Other options, such as submitting an emergency financial report or conducting a rights issue, do not directly address the requirement to register as a private company in this situation. Holding a general meeting may be part of a broader corporate governance process, but it is not the primary requirement when the issued share capital falls below the stipulated minimum.