In some cases – especially in restructuring cases – it is helpful to reduce an association’s capital. As a result of this, investors forego a part of their capital to improve the structure of the equity.
This process leads to an extraordinary benefit for the business, which then can be passed to account with a possibly incurred loss carried forward.
During the process of a capital reduction we control the regular transactions as laid down in the contract as well as – if necessary – examine if the implemented measures comply with the actual purpose.
