How to decrease my capital?
Steps to reduce share capital
- Each Director signs a Solvency Statement within 20 days before the date the Special Resolution is passed.
- Directors sign Directors’ resolutions (the “Directors’ Resolutions”) to recommend the reduction of capital and convene an Extraordinary General Meeting (EGM) to pass the resolution for reducing the share capital (the “Special Resolution”).
- A Director signs a notice to convene the EGM (the “Notice”) and arrange for the shareholders of the company to sign a consent to short notice (if less than 14 days notice is given).
- Send copy of the Notice to all shareholders and person(s) entitled to receive notice of meeting.
- The company shall arrange for the EGM to be held and for the Special Resolution to be passed.Note: Copies of the Solvency Statement are to be made available for inspection by the shareholders at and throughout the EGM and shall throughout the 6 weeks beginning with the resolution date, make the solvency statement or a copy of it available at the company’s registered office for inspection free of charge by any creditor of the company.
- The company shall, within 8 days from the EGM, lodge with ACRA a publication for the proposed reduction of capital and shall within 14 days lodge a notice of resolution with ACRA.
- If after 6 weeks from the publication, no Application has been made by a creditor to object to the reduction of capital, the company shall after the end of the 6 weeks but before the end of 8 weeks beginning from the date of the Special Resolution, lodge with ACRA a notification on the reduction of capital.
- Send cheques or effect telegraphic transfer to return capital to shareholders if necessary.
- If reduction of capital involves a change in the number of shares, to cancel old share certificate(s) and issue new share certificate(s) for the remaining number of shares (if necessary).
Should you need to decrease your capital, please do not hesitate to contact us for assistance.
