A Capital Reduction is process permitted under the Companies Acts.
Following the 2006 Companies Act the process does not require a a court order.
Under a Capital Reduction the non-distributable share capital and reserves of a limited company to be distributed to shareholders.
The process is the same whether the company is trading on or is considering ceasing trading.
When a company is ceasing trading it will need to perform a capital reduction in order to repay share capital and avoid Bona Vacantia. The alternative is a formal liquidation.
See also: Ceasing trading: overview
Join us on LinkedIn 
