Board Resolution for Reduction of Share Capital​

The process typically requires approval from a specific majority of shareholders, as outlined in the company's articles of association or governed by the Companies Act 2006. Once approved, the reduction of share capital must also gain confirmation from the court, ensuring the interests of creditors and shareholders are adequately protected.

By enacting a reduction of share capital, a company can reinforce its financial health, either by eliminating obsolete shares or by using freed-up resources for other strategic business initiatives. This procedure can lead to a more efficient capital structure, aligning the company's financial resources with its current and future operational needs.