A capital reduction transaction implies the reduction of the nominal value given to the shares or the number of shares outstanding.
1️⃣ Capital reduction by reduction of nominal value
2️⃣ Capital reduction by reduction of the number of shares
1️⃣ Capital reduction by reduction of nominal value
1. Create the associated event(s) in the timeline to mention this capital decrease and associate the related documents (PV/DUA deciding on the reduction, updated KBIS,...)
👉 Reminder : Training Equify - events, labels and documents
2. Update the amount of share capital (if needed = i.e. if no further operation on the capital) in the company parameters
2️⃣ Capital reduction by reduction of the number of shares
It will be necessary to record two types of transactions that you can group together in the same event:
➡️ One or more transactions in which the company buys back its own shares
➡️ One or more cancellation transactions relating to the repurchased securities
1. Record a buyback transaction : click on "add" & "transaction", then select Buyback. Enter the repurchase date, the security and accounts involved, and save.
2. Record a cancellation transaction : click on "add" & "transaction", then select Cancellation. Enter the date of cancellation, the security concerned, select the company account and the number of securities to be cancelled and save.
⚠️ In the event of the issue of securities giving access to the capital - issued previously and relating to the securities concerned - the subscription conditions for these securities will be systematically adjusted
→ Depending on the type of reduction made, the adjustment will be made by :
- a decrease in the exercise price (share subscription price reflecting the decrease in the nominal value of the share)
- a decrease in the conversion ratio (reduction in the quantity of shares to be subscribed by exercising securities giving access to them)
✨ Your capital reduction is now registered