Mean By Capital Reduction. Within the company there are several reasons for such treatment but here are some common ones. A capitalized cost reduction is any upfront payment that reduces the cost of financing.
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Capital reduction and reconstruction is a way to reduce the capital amount of the company. Capital reduction and reconstruction. In this process the target company s shares are cancelled by way of a reduction in capital.
This is typically done as a way to increase the value of the company stock.
A company may reduce its share capital in a variety of ways for example it can extinguish or reduce the liability on any of its shares in respect of share capital not paid up cancel any paid up share capital that is lost or not represented by available assets known as a loss reduction or repay any paid up share capital in excess of the company s wants. Capital reduction means the proposed reduction of the share capital of the target under sections 72 and 74 of the act which forms part of the scheme. Know details why reduction of capital is needed. A company may reduce its share capital in a variety of ways for example it can extinguish or reduce the liability on any of its shares in respect of share capital not paid up cancel any paid up share capital that is lost or not represented by available assets known as a loss reduction or repay any paid up share capital in excess of the company s wants.
