Civil Code

According to Section 1, Art. 29 of Law N 208-FZ of society has the right, and in some cases required to reduce its share capital by reducing the par value of shares or reducing their total number, including through the acquisition of shares. Reducing the share capital through the purchase and redemption of shares is permitted if this is available the company’s charter. By virtue of paragraph 4 of Art. 99 of the Civil Code and section 6 of Art. 35 of the Law N 208-FZ, if at the end of the second and each subsequent fiscal year’s net asset value is less than the company capital, it must declare and register in the prescribed manner decrease its authorized capital to an amount not exceeding the net asset value.

If the value of these assets of the company becomes less certain statutory minimum charter capital, the company is subject to liquidation. Similar provisions in for limited liability companies and companies with additional liability contained in the Federal Law of 08.02.1998 N 14-FZ ‘On Limited Liability Companies. ” Justification for the strict rules of law, as ‘society is subject to liquidation’, can be found in the provisions of Art. 2 Civil Code: an independent business, carried out at your own risk activities aimed at systematically profit from the use of property, sale of goods, works or services by persons registered as such in the manner prescribed by law.