High Court Confirmation of Capital Reduction

We are pleased to share that our Firm had recently obtained a High Court Order confirming the Proposed Selective Capital Reduction (“SCR”) of an unlisted public company (“Company”) pursuant to Section 116 of the Companies Act 2016. The SCR involved the cancellation of shares held by all the entitled shareholders (excluding major shareholders) and a corresponding capital repayment to the entitled shareholders.

Considering the factual circumstances of the Company, we manage to dispense with the settlement of list of creditors and creditors inquiry pursuant to Section 116(3) of the Companies Act 2016. The Company was able to carry out the SCR smoothly and within the intended timeframe. Upon completion, the SCR will result in a leaner shareholder base and set the stage for enhanced operational flexibility and long-term corporate efficiency.

We are proud to represent the Company in the court application for confirmation of the SCR and remain committed to empowering our clients through strategic, practical, and forward-thinking legal solutions.

Our Partner, Lim Kuan and Associate, Hoong Li Kee have acted in this matter.