INFO 56
Reduction in share capital
This is Information Sheet 56 (INFO 56). It covers provisions set out in Division 1 of Part 2J.
In plain English
INFO 56 explains the rules for reducing a company's share capital, as outlined in Division 1 of Part 2J.
INFO 56 applies to companies registered in Australia. It details the requirements for reducing a company's share capital. This includes shareholder approval and court approval in some cases. Companies must follow these rules to ensure fairness and transparency. ASIC published this guidance.
Why it matters
Reducing share capital can impact a company's financial structure. Directors must understand and follow INFO 56 to avoid legal issues and maintain stakeholder confidence. It’s important for governance and financial stability.
AI-assisted summary, grounded in the source link below. Generated 2026-05-23 via gemma3:12b.
Issuing regulator
ASIC →Topics
Source: https://www.asic.gov.au/for-business/running-a-company/shares/reduction-in-share-capital/. Rules Mate indexes + summarises; always verify against the regulator's live publication.