Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
The cancellation of part of a company’s paid-up share capital under a tribunal-sanctioned scheme, reducing the number of shares in issue.
Unlike a split it destroys rather than divides. A price series cannot show the difference, because a cancellation is a legal act and not a transaction.
The ending of the rights in an asset — shares cancelled under an approved resolution plan or a sanctioned capital reduction, for instance — which falls within the definition of a transfer.
This is what finally lets a worthless holding become a claimable loss, and it happens on a date somebody else sets. Keep the order that records it.