Document background
A Board Resolution For Cancellation of Shares is required when a Singapore company decides to reduce its share capital through share cancellation. This may occur following share buybacks, capital reduction exercises, or corporate restructuring. The resolution must satisfy requirements under the Companies Act (Cap. 50) and include specific details about the shares being cancelled, the legal basis for cancellation, and compliance with regulatory requirements. It serves as the primary authorization document for the share cancellation process and must be filed with ACRA. The resolution is particularly important for maintaining proper corporate governance and ensuring transparent record-keeping of share capital modifications.
