Legal capital

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Legal capital is a concept used in UK company law, EU company law, and various other corporate law jurisdictions to refer to the sum of assets contributed to a company by shareholders when they are issued shares. The law often requires that this capital is maintained, and that dividends are not paid when a company is not showing a profit above the level of historically recorded legal capital.

In the UK a public limited company must have a minimum legal capital of £50,000. There is no such requirement for a private company

Distribution restrictions[edit]

Share buybacks[edit]

Reduction of capital[edit]

Main article: Reduction of capital

See also[edit]