Minutes GMS Reduction Nominal Value

Reducing nominal value of shares

Minutes of the general meeting of shareholders (GMS) amending the articles of association as a result of the reduction in nominal value of shares. Reducing the nominal value of shares reduces the capital in a private limited company. Such a resolution must be passed by the shareholders’ meeting.

What to fill in yourself

You have to fill in the details of the company yourself. Of course, you have to include the new value of the shares and the capital in the resolution. For the distribution to be paid to shareholders (free of dividend tax), a liquidity test must also have been carried out.

Summary

Contains provisions on:

• General provisions regarding the meeting;
• Decision to reduce the nominal value of shares;
• Distribution of the value to shareholders.

Context

You use this document in the following situation:
Reducing the nominal value of shares reduces the capital of a private limited company. This releases equity that can then be distributed to shareholders. This decision has been taken since the introduction of the flex private limited company.

With this, the old capital requirement of €18.000 was dropped. Many old private limited companies still have that capital stated in the articles of association. By reducing this, you can take the amount out of your private limited company tax-free.