Redemption of capital is the operation by which the company reimburses the shareholders all or part of the face value of their shares as an advance on the proceeds of the future liquidation of the company.

The redemption of capital shall be ordered for by the ordinary general meeting where it is provided for in the Articles of Association or the extraordinary general assembly meeting if no provision exists in the Articles of Association.

Shares may be totally or partially redeemed. Shares totally redeemed are referred to as dividend shares.

Redemption shall be effected by equal reimbursement for each share of the same category and shall not lead to the reduction of capital.

The sums of money used for the reimbursement of shares shall be deducted from profits or withdrawn from the non-statutory reserves.

Scroll to Top