Capital - reduction

Capital - reduction

    The reason for the decrease in the capital is the losses of one company due to the bargain. The reduction of capital does not affect creditors well and therefore, to protect their interests, the law imposes certain requirements. There are two ways to reduce capital - nominally and effectively. These are the ways according to the law. Other ways of reducing the capital are: to reduce the value of the share of the respective partner in the capital; to return the share of the capital of the terminated partner; to be exempted from the obligation to deposit the unpaid portion of the capital share. In order to reduce capital, a decision must first be taken by the general meeting or the sole proprietor of the company. The decision shall state the purpose and the size and manner of the reduction. The second thing to do is to make a decision on the Commercial Register. Creditors have the right to object in writing to the reduction within 3 months of the announcement of the decision. After this deadline, the third step is to enter the decision in the Commercial Register.