How to reduce the authorized capital

In the activities of legal entities there are cases when it is necessary to change the size of the authorized capital. This value is reduced in situations where the value of the company's assets is insufficient.

Instruction manual

1

See if you can reduce the authorized capital. According to the legislation of Russia concerning the conduct of enterprises, the following section is provided: the authorized capital of the company can be reduced if the real value of all assets of the enterprise, shown in the annual balance sheet, for the second and subsequent years is less than the size of the authorized capital of LLC. In this case, the founders of the organization are obliged to reduce this value to a size that does not exceed the value of the net assets of the company.

2

Hold a general meeting of the founders of the company. Consider with them the issue of reducing the value of the authorized capital. Issue the results of the meeting in the minutes. If the company consists of one founder (owner), then the decision to reduce the authorized capital ratio is taken solely, and drawn up in the form of a document on the adoption of the relevant decision.

3

Put the following questions at the meeting to reduce the authorized capital of the enterprise:

- what should be the size of the authorized capital, already in a reduced value;

- a possible change in the share of each founder and their ratios in the authorized capital;

- change in the par value of participants' equity investments;

- approval of a new document - the Charter of the Company and various amendments to it;

- drawing up notifications to all creditors of the company about a decrease in the share capital indicator.

4

Please note that creditors must be notified no later than thirty days from the day this decision is made. In this case, the notification of creditors is carried out on receipt, or by mail notifications. In turn, when registering a decrease in the amount of the authorized capital in the registering body, copies of such notifications should be made for their subsequent application to copies of postal receipts of dispatch.