Increase funds available for dividends with a share capital reduction
Our team of corporate solicitors can help your business by:
- Advising on share capital reductions that tie in with your broader business strategy and relationship with your shareholders, including whether the proposed capital reduction will have the desired outcome.
- Checking your existing documents, for example the articles of association, to ensure that a capital reduction is possible, and amending these if necessary.
- Showing you how you can pay dividends even if your business has accumulated losses.
- Unblocking the payment of dividends by creating distributable reserves from which you can pay dividends.
- Helping you to free up cash on your books so you can return surplus capital to shareholders.
- Helping you buy back or redeem shares by reducing your company’s capital.
- Preparing all the necessary documents for a share reduction including directors’ solvency statements, board resolutions and Companies House forms, and obtaining any necessary court order.
- Helping you ensure that no tax charge arises as a result of the reduction in capital.
What our clients say
We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.
My colleagues and I have found them to be adept at dealing with the variety of challenges facing early stage companies. They are a trusted source for sound, sensible advice and practical deal management.
Harper James provide a cost effective, responsive and versatile service and provide us with access to legal teams that are experienced, commercially focused and well-resourced. Most importantly they are extremely familiar with the SME market and know the venture capital sector well.
As a University spin-out getting the right team of lawyers to support our emerging business was fundamental and the team are always available to provide us with the invaluable guidance and support we require.
We rely on Harper James to provide us with support across a full range of service areas, from commercial contracts and employment issues to fundraisings and investments. The team at Harper James are always available to provide us with cost effective, pragmatic and commercially focused advice.
Over the years Harper James have helped us navigate complex legal issues and red tape, providing distilled options and legal consultancy that far exceeds the service levels we’ve previously experienced from more traditional law firms. The team act like our own in-house counsel so, regardless of which lawyer we work with, we feel supported and that they truly have our best interests at heart.
Choosing Harper James was one of the best choices we made as a start-up. The firm has provided invaluable advice and insight throughout the early stages of our business.
As with any business, we need access to good quality legal advice without the fear of facing huge legal fees. The service provided by Harper James is ideal because they are always available to assist and we know that the advice provided is of outstanding quality, with pricing that is cost effective and completely transparent.
Quite frankly I was stunned at the low cost of the service given the value it provided us.
How could you benefit from a reduction of share capital?
Return cash to yourself or your investors
If your business is going through a lean patch, but you or your investors would welcome a dividend return, we can help you do this in a risk-free way by reducing your share capital.
Boost your capital after an unsuccessful deal or demerger
Your company may be capital-rich because a proposed acquisition has been unsuccessful, or because your group has gone through a demerger. Instead of leaving cash in your company, remove it safely and efficiently by a reduction of share capital.
Save money on capital gains tax charges with the right legal help
Proceeding with a reduction of share capital without appropriate legal support can mean that a return of capital will attract a charge to capital gains tax. We’ll show you how to structure the transaction to avoid an unwanted charge.
Keep your share capital reduction on the right side of the law
To carry out a share capital reduction lawfully, certain documents and even a court order may be needed before the transaction is carried out. We can draft and explain the necessary documents and fill out the required forms for you so that you don’t get caught out.
Who we help: Founders, directors, investors, and shareholders across a range of businesses
We support a wide range of UK-based companies in a number of sectors. Getting the right legal team in place if you are considering a reduction in share capital is essential to achieve a smooth and pain-free transaction. We have experience in all aspects of corporate transaction, whatever the size and trading history of your business.
Why choose Harper James Solicitors?
We can assist you with a strategic analysis of your business and the proposed transaction, put in place all the necessary documents and infrastructure and make the required registrations and complete the transaction on your behalf.
But our support doesn’t have to stop there.
Our holistic approach to working with businesses means that we’ll look at your wider strategy, taking you from a single corporate transaction to a whole host of business legal support that will help you scale. You’ll have access to not only our corporate experts, but our teams of commercial solicitors, intellectual property experts, commercial property solicitors, data protection experts and much more. Our aim is to partner with you and help your business every step of the way so that you get an integrated legal service that works towards your long-term goals.
Plus, we have all been recruited from top UK law firms or from large international businesses and have advised clients both as external advisors and as in-house corporate counsel. Find out more about the team here:
Abby Watson is a corporate solicitor, specialising in private equity investments, mergers & acquisitions, EMI share schemes, corporate finance and governance and more.View profile
Adam Kudryl is a Partner and Corporate & Commercial Solicitor at Harper James Solicitors, specialising in strategic investments, acquisitions and sales.View profile
Corporate Solicitor & CEO
Toby Harper is the CEO & Founder of Harper James Solicitors, as well as a corporate & commercial solicitor. He specialises in venture capital and the tech sector.View profile
Jas is a corporate solicitor at Harper James Solicitors, advising on corporate governance, mergers & acquisitions, venture capital & investments.View profile
Shubhu specialises in early-stage fund raisings, shareholder arrangements and M&A. Prior to joining Harper James she worked at Mills & Reeve and before that at Addleshaw Goddard and Slaughter and May.View profile
Michelle regularly advises business owners on corporate and commercial legal matters. She was partner in a regional firm and has also spent time in-house at a Higher Education business dealing with its research, innovation and knowledge exchange contracts.View profile
Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
Straightforward access to senior solicitors at a competitive rate.
An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.
Have legal peace of mind for £189 per month with additional support from £99 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
For businesses requiring 60+ hours of support a year, with prices equivalent to £99 per hour.
Fully account managed quarterly subscription service for businesses with more complex legal needs.