Reduction of capital or capital reduction is to decrease stock of a company. During reduction of capital, sometimes the company returns a portion of the stock of a company to shareholder. A private company can reduce its capital in many different ways using new procedures for the reduction of capital under the Companies Act 2006. Before these provisions came in, a court order was required to reduce share capital [1]

See also

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References

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  1. ^ "Company Law Club // Reduction of capital (Without court order)".