Unlike capital reduction, the term reconstruction normally means the sale of the undertaking of an existing company, a new company specially form for that purpose.And, reorganization is the term used to denote a rearrangement of a company’s share capital either by consolidation of shares of different classes or by the sub-division of the shares into […]

Often, in the papers, we heard about companies undergoing capital reduction. So what really, is capital reduction?
Simply reduction of capital is the diminution in the nominal amount of the share capital or reduction in the paid up capital of a company.
In what situation may a company reduce it share capital?
The circumstances might include the following:

Where […]