REDUCTION OF SHARE CAPITAL SERVICE
Our Reduction of Share Capital Service is suitable for public and private companies incorporated in the United Kingdom.
What does our package include?
| 1 | A review of the company's Articles of Association and any Shareholders Agreement in relation to the planned reduction. |
| 2 | Advice on your proposed course of action. |
| 3 | A Solvency Statement or court application (as applicable). |
| 4 | A Directors' statement of compliance (if required). |
| 5 | Directors and shareholders' resolutions as required. |
| 6 | Filings at Companies House. |
| 7 | Update company registers, new share certificates as required. |
MAKE ENQUIRY
NOTE: Private companies can now reduce their share capital without court approval. This greatly simplifies the procedure and reduces the cost of implementation.
The court will not register a reduction by a public company where the reduction brings the nominal value of the share capital below the authorised minimum for public companies
(£50,000), unless the public company first re-registers as a private company
Private companies limited by shares can reduce their share capital by special resolution:
- supported by a directors' Solvency Statement; or
- confirmed by the court.
Public companies can only reduce their share capital by special resolution confirmed by the court.
The reduction itself can be effected in any way. For example, a company may:
- cancel paid-up share capital that is lost or unrepresented by available assets;
- release the shareholders' liability to pay-up share capital; or
- repay paid-up share capital in excess of the company's needs.
