Share Capital Reduction

What is Share Capital Reduction?

It’s decreasing a company’s issued or authorised share capital, often by repurchasing shares or reducing nominal value.

Think of it like this…

It’s trimming the company’s ownership structure.

Why does it matter?

• Requires shareholder approval and solvency tests
• May return capital to shareholders or restructure equity
• Needs CIPC filing in some cases

Best practice

Document the process with resolutions and updated registers.