The company may, by a resolution of the extraordinary general assembly, reduce its capital if it is more than the company needs or if the company has sustained a loss and decides to reduce the capital to the actual value that exists.

The resolution reducing the capital shall be issued only after reading the reports of the board of directors and the auditor on the reasons for the reduction, the obligations of the company and the effect of such reduction on these obligations.

A copy each of the reports of the board of directors and the auditor shall be forwarded to the Ministry of Commerce and Industry.