Rule
A TRNC company may reduce its share capital and return funds to shareholders only with Court confirmation, in a process that gives creditors who object a statutory right to be heard — a legally distinct mechanism from an ordinary dividend distribution.[1]
Exceptions
- This Rule states the existence of the Court-confirmation mechanism and its creditor-objection right only. It does not state, and must not be read to imply, that capital reduction is a simple substitute for a dividend, or that it carries the same, a different, or any specific tax treatment as a dividend — tax consequences of a capital reduction were not independently researched and are not addressed here.
Applies to
- Who:
- Investors · Company shareholders