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Cancellation of shares

Cancellation of shares

Cancellation of shares means that shares are withdrawn and cease to exist, often to reduce share capital.

What is cancellation of shares?

Cancellation of shares means that certain shares in a limited company are withdrawn and cease to exist. It is often used to carry out a reduction of share capital.

 

When is it used?

Cancellation can be used to buy out a shareholder or to return capital to the owners. The decision is made by the general meeting and affects both the share capital and the ownership split. The change is recorded as a share ledger event and with Bolagsverket.

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Related terms

Reduction of share capital

A reduction of share capital means a limited company lowers its registered share capital.

Redemption of shares

Redemption of shares means the company redeems and repays certain shares to the owner.

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.