N.Y. Business Corporation Law 802 – Reduction of stated capital by amendment
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§ 802. Reduction of stated capital by amendment.
Terms Used In N.Y. Business Corporation Law 802
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(a) A corporation may reduce its stated capital by an amendment of its certificate of incorporation under section 801 (Right to amend certificate of incorporation) which:
(1) Reduces the par value of any issued shares with par value.
(2) Changes issued shares under subparagraph (b) (11) of section 801 that results in a reduction of stated capital.
(3) Removes from authorized shares, shares that have been issued, reacquired and cancelled by the corporation.
(b) This section shall not prevent a corporation from reducing its stated capital in any other manner permitted by this chapter.