Reduction of Share Capital Guide

This guide is written for private and public companies incorporated in the United Kingdom that are considering a reduction of share capital. Click on one of the boxes below for further information.

INTRODUCTION

What is a reduction of share capital?

PRELIMINARY CONSIDERATIONS

Additional matters to consider in relation to a proposed reduction.

WHY REDUCE CAPITAL

What is the effect of a reduction?

SOLVENCY STATEMENT

The form and contents of a directors' Solvency Statement.

COURT CONFIRMATION

A summary of the procedure for the court approval route.

PROCEDURAL OUTLINE

A summary of the procedure for the Solvency Statement route.

REDUCTION TIMINGS?

When does a reduction in share capital take effect?

What is Reduction of Share Capital

Why Reduce the Capital?