reduction of capital
reduction of capitala company's capital may be lawfully reduced in two ways:
- (1) by extinguishing or reducing the liability of its members on any uncalled capital; or
- (2) by repaying to them the nominal value of their shares.
Where a company has suffered losses, it can cancel paid-up shares on the ground that they are unrepresented by available assets. A reduction requires a special resolution; it must be authorized by the articles and confirmed by the courts.