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Reduction of capital

A reduction of capital occurs when your A private company limited by shares incorporated and registered in England and Wales. reduces its The total nominal value of a company's shares. References to a company’s share capital can be read as references to all of that company’s shares. or capital reserves. Reducing your A private company limited by shares incorporated and registered in England and Wales. 's The total nominal value of a company's shares. References to a company’s share capital can be read as references to all of that company’s shares. is a technical legal process, most commonly carried out in conjunction with advice from tax advisers and accountants. This section contains an explanation of when your A private company limited by shares incorporated and registered in England and Wales. might want to consider reducing its The total nominal value of a company's shares. References to a company’s share capital can be read as references to all of that company’s shares. , and an introduction to the legal process you will need to follow in order to do so.

company-secretarial-shares-and-admin

When a reduction of capital takes place

  1. 1.What is a reduction of capital?

When a reduction of capital may be needed

  1. 2.When might my company wish to undertake a reduction of its capital reserves?

How to do a reduction of share capital

  1. 3.How can my company reduce its share capital?
  2. 4.Does my company need a specific power in its articles of association to reduce its capital?
  3. 5.Does my company need the approval of its shareholders in order to undertake a reduction of capital?

Court approved reduction of capital

  1. 6.In summary, how does the Court process work?

Reduction of capital using the solvency statement

  1. 7.In summary, what steps will my company have to take in order to reduce its share capital using the solvency statement (non-Court) process?