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Companies Act 1967

Companies Act 1967 s 78A

s 78A Preliminary

78A.—(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:(a) extinguish or reduce the liability on any of its shares in respect of share capital not paid up; (b) cancel any paid‑up share capital which is lost or unrepresented by available assets; (c) 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.[36/2014] (4) In this Division —“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:(a) the amount of the company’s share capital that is thereby reduced; (b) the number of shares that are thereby cancelled; “resolution date”, in relation to a resolution, means the date when the resolution is passed.[36/2014] (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.[36/2014] (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. —(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:(a) extinguish or reduce the liability on any of its shares in respect of share capital not paid up; (b) cancel any paid‑up share capital which is lost or unrepresented by available assets; (c) 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.[36/2014] (4) In this Division —“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:(a) the amount of the company’s share capital that is thereby reduced; (b) the number of shares that are thereby cancelled; “resolution date”, in relation to a resolution, means the date when the resolution is passed.[36/2014] (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.[36/2014] (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.

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Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.