After the promulgation of the new company law, the registered capital is required to be paid in place within five years. The owners and shareholders of many companies are worried that they will not be able to pay and have begun to reduce their registered capital. So, how can the company reduce its capital?The new company law will not come into force until July 1, 2024. Therefore, at present, it is still operated in accordance with the current "Company Law".
According to the relevant provisions of the current Company Law, the company's capital reduction is divided into four steps, and the first step is to convene a shareholders' meeting. Because the company's capital reduction is a major matter of the company, it needs the consent of more than 2 3 voting rights to pass. Therefore, if you want to reduce the capital, you need to get the resolution of the shareholders' meeting agreeing to the capital reduction before you can start to reduce the capital.
The second step is to confirm the company's creditor's rights and debts. The requirement of the Companies Act is that the company needs to prepare a balance sheet and a list of assets at that time.
In the third step, the company shall notify the creditors within 10 days from the date of the resolution to reduce the registered capital, and shall also publish the report in the newspaper within 30 days.
Step 4: Wait. It is to wait for the contact of creditors, and if the company's creditors do not agree to reduce the capital, they also need to repay the debts first, or provide an equal amount of security.
The fifth step, if there are no problems with the above steps, is also completed. You can take the previous resolution documents and go to the administrative examination and approval department to handle the change registration of capital reduction.
Of course, these are all legal provisions. Before you reduce your capital, it is best to log in to the local administrative approval, look at the local process and the required documents, and operate according to the local guidance, which will reduce unnecessary trouble.