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The common problem of capital reduction
RELEASE TIME:2017-07-04 BROWSE:1395

Why should the company capital? What was the reason?

Answer: enterprise capital mainly has the following several reasons:

1, one-time payment of accumulated debt. Due to years of operating losses accumulated, even after several years, the profit of the enterprise can not make up for, in this case you need to make up for the reduction of capital, the cumulative loss.

2, adjust too much capital. At the beginning of the establishment of companies need huge amounts of money, on the right track, there may be excess funds, therefore also need capital.

3, additional dividends. Since dividends are distributed on the basis of capital gains, reducing capital can increase dividends. At the same time, but also with "one-time payment of accumulated debt" combined to sweep away losses and restore dividends as soon as possible.

4, the merger. This is usually done when the company's assets are balanced.

5, the separation part. Some departments in separate assets, also will be separated, this reduction of the enterprise is. There are two forms of capital and substantial. The form of the capital reduction refers to the reduction of capital only in books, and the company's property is not decreased, such as a certain percentage of the company to repurchase shares in circulation, reduce the denomination, a sum of funds to shareholders. Due to poor operating conditions and the need to make up for the loss of the capital is the substantial capital reduction, most belong to this situation.