Reduction Of Capital
By the Law 4548/2018 a public limited company to be able to make a reduction in capital the following must apply:
The minimum capital of S.A. is set at the amount of twenty-five thousand (€ 25.000) euros, fully paid up at the company's establishment.
The invitation to convene the general meeting and the decision of the general meeting to reduce the capital must include at least the purpose of the reduction and how it should be implemented.
The decision of the general meeting to reduce capital is an amendment to the Articles of Association and is made public. Additionally, this decision must also be published on the company's website.
The actual decrease occurs with the return of capital to the shareholders. The return can be done either by decreasing the value of each share or by canceling part of the number of shares. The reduction may be proportional to all shareholders or only to certain shareholders.
On 31 December 2018, the company had a share capital of € 300,000 which was formed as follows.
• Cash deposit on recommendation 23/5/2014, € 300,000.
The company's balance sheet at 31/12/2017 also reported a loss of € 50,000.
The General Meeting of Shareholders decided to reduce the capital by € 300,000.
Prior to the actual reduction of the capital, the loss of € 50,000 will be deducted and the rest will be distributed.
Reduction of Capital € 150.000
Impairment Loss € 50.000
Remaining Amount € 100.000
Accounting records must be in use in 2019
Decrease of Capital to consequences of loss
2.Decrease of Capital with return to Shareholders