reduction of capital

reduction of capital

a company's capital may be lawfully reduced in two ways:
  1. (1) by extinguishing or reducing the liability of its members on any uncalled capital; or
  2. (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.

References in periodicals archive ?
The terms and procedures for the reduction of capital and the explanatory report to the General Shareholders Meeting will be defined at the Board of Directors meeting scheduled for 4 March 2014.
The distribution comprises a reduction of capital of $A2.5737 and a special dividend of $A1.1563 per ordinary share (on a pre-consolidation basis), representing 69% and 31% of the distribution respectively, which was calculated using the SYD closing share price of $A3.73 on 10 January 2014.
The first objective is to identify innovations in the short, medium and long terms and to translate them in terms of reduction of capital costs or maintenance and operation of wind turbines.
The merger and the new scheme, which was sanctioned earlier this week, became effective after the registration of Xstrata's reduction of capital stock.
Despite the planned reduction of capital spending, information technology-related investment is likely to increase 25.0% in fiscal 2001, 3.9 percentage points more than the previous year's projected rise.
He pointed out that portfolio changes in Chemicals were well on target, with USD4.4 billion completed or contracted, and forecast a reduction of capital employed in the business of USD5.7 bln, or more than 40% by the first half of next year.
Oxy-fuel technology is proven to bring multiple benefits such as over 50% reduction in nitrogen oxide emissions, 10-20% in energy savings, about 25% increase in productivity, reduction of capital, and improvement in efficiency and glass quality.
Certain other steps to reduce capital costs of nuclear power plants further, such as financing, siting, and site-specific issues, are not covered by the report."Reduction Of Capital Costs Of Nuclear Power Plants"OECD, Paris, 2000 - ISBN 92-64-17144-4 - FF 240 - GBP 24 - USUSD 38 - DM 72 - ?
A gloomy forecast has also led to a reduction of capital projects at Abitibi-Price Inc.
Sound Energy, the Moroccan upstream gas company, announces that the resolution put to Sound Energy shareholders at the General Meeting of the Company held earlier today to enable, subject to confirmation of the Court, the reduction of capital described in the Circular, was duly passed.
Also, shareholder value reduction of capital of Centerra Gold Inc.
The plan, which also includes reduction of capital investment to 400 billion yen or less in fiscal 2002, reflects streamlining efforts amid declining electricity demand, it said.

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