Equity below half of share capital
When equity falls below half of share capital, a specific legal process applies. Here is the 2026 practical framework.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Equity below half of share capital
Updated March 2026 - When equity drops below half of share capital, the company must follow a specific legal process and decide how it will restore its financial position.
See also convert SARL into SAS, tax audit anticipation and holding taxation.
Main takeaway
This is not an automatic shutdown, but it does trigger formal decisions, filings and a restoration strategy.
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Conclusion
The key issue is to react on time and align legal formalities with a credible financial plan.
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Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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