Commercial Companies Law

Article 205 — Article (205) Methods of Capital Reduction

Part Four: Public Joint Stock Companies · Chapter Four: Capital of Public Joint Stock Company

The Capital may be reduced by any of the following methods: 1. Reducing the nominal value of the shares, through either partially refunding their value to the shareholders or relieving the shareholders of all or part of the outstanding share price owed by them; 2. Reducing share value by writing off a part thereof equal to the loss incurred by the Company; 3. Writing off a number of the shares equal to the proposed reduction; or 4. The purchase and subsequent cancelation of a number of shares equivalent to the proposed reduction.

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