Can a company reduce its issued capital?
A company cannot normally reduce its issued capital as this is the personal property of the shareholders, not of the company. However, the following exceptions apply:
if a court order confirms a 'minute of reduction' following a special resolution of the company;
if shares are redeemed (bought back) in accordance with a redemption contract;
if the company's articles allow it to buy its own shares and this purchase is authorised by a special resolution. A public company whose shares are listed on a recognised investment exchange can either cancel those shares or hold them ‘in treasury’ for resale or transfer to an employees’ shares scheme at a later date. In all other cases the shares are regarded as cancelled when the company buys them back, although this does not reduce the company’s authorised share capital.
BACK TO COMPANY REGISTRATION GUIDANCE
Source:
http://www.companieshouse.gov.uk/about/gbhtml/gba6.shtml#one
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