Loss of more than half of the share capital
What to do if you lose more than half of the share capital in 2026? Deadlines, formalities and risks to anticipate.
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.
Loss of more than half of the share capital
Updated March 29, 2026 - The loss of more than half of the share capital is not just an accounting signal. It is a legal event which triggers specific obligations for the companies concerned, particularly in SARL and SA/SAS according to the applicable texts.
When the rule is activated
In practice, the situation appears when equity becomes less than half of the share capital following losses. The official Entreprendre.Service-Public sheet recalls that it is then necessary to organize a decision by the partners to rule on the continuation of the activity.
To keep an overview, also see Taxation and business taxes, Business tax audit and Deadline for filing the tax package 2026.
Deadlines to respect
The formalism imposes in practice:
- ▸to consult the partners within the time limits provided for by the texts;
- ▸to publish the decision;
- ▸then to reconstitute the equity within the legal period when the activity is continued.
Why it’s a management topic, not just accounting
This file concerns both:
- ▸reading the accounts;
- ▸the responsibility of managers;
- ▸the relationship with financial partners;
- ▸the ability to justify a recovery or recapitalization plan.
Common errors
- ▸discover the situation too late, after closure;
- ▸forget the legal formalities;
- ▸not aligning the recapitalization plan with actual cash flow;
- ▸confuse accounting treatment and legal treatment.
Hayot Expertise Advice: when equity deteriorates, the best protection for the manager remains the speed of diagnosis and the quality of the documentation decided at the meeting.
Our support
We help to qualify the situation, prepare the formalities and articulate the legal, accounting and tax solution.
Quick link: Secure your legal and accounting formalities
Conclusion
In 2026, the loss of more than half of the share capital must be dealt with quickly and cleanly. The major risk often comes less from the loss itself than from the delay in reaction.
Contact: Want to check your obligations before the meeting or publication? Our firm can take over your file and structure the right action schedule. Make an appointment with Hayot Expertise
(Official sources: Entreprendre.Service-Public.fr - loss of half of the share capital, Commercial Code art. L223-42 and L225-248)
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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