Singapore legislation
Section 78A
Section 78A
Preliminary
(1)
A company may reduce its share capital under the provisions of this Division in any way and, in particular, do all or any of the following:
extinguish or reduce the liability on any of its shares in respect of share capital not paid up;
cancel any paid‑up share capital which is lost or unrepresented by available assets;
return to shareholders any paid‑up share capital which is more than it needs.
(2)
A company may not reduce its share capital in any way except by a procedure provided for it by the provisions of this Division.
(3)
A company’s constitution may exclude or restrict any power to reduce share capital conferred on the company by this Division.
(4)
In this Division —
Definition
“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:
the amount of the company’s share capital that is thereby reduced;
the number of shares that are thereby cancelled;
Definition
“resolution date”, in relation to a resolution, means the date when the resolution is passed.
(5)
This Division does not apply to an unlimited company, and does not preclude such a company from reducing in any way its share capital.
(5A)
This Division does not apply to any redemption of preference shares issued by a company under section 70(1) which results in a reduction in the company’s share capital.
(6)
This Division does not apply to the purchase or acquisition or proposed purchase or acquisition by a company of its own shares in accordance with sections 76B to 76G.