Non-statutory reserve
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Company law - distributable reserves - capital - Reduction of Capital.
Reduction of Capital is a formal legal process that - subject to safeguards - transforms undistributable reserves into legally distributable amounts.
In this context, non-statutory reserves are ones that can be reduced or cancelled only by a relatively more complex two-step process.
Non-statutory reserves include merger reserves, unrealised profits, and other reserves.
(Source - The Treasurer, Issue 4, 2025, p40-41.)
See also
- Capital
- Capital account
- Capital adequacy
- Capital and liquidity management
- Capital buffer
- Capital charge
- Capital conservation
- Capital Conservation Buffer
- Capital control
- Capital employed
- Capital expenditure (capex)
- Capital instrument
- Capital maintenance
- Capital management
- Capital market
- Capital redemption reserve
- Capital Requirements Directive
- Capital securities
- Capital structure
- Capitalisation
- Corporate finance
- Distributable reserves
- Equity
- Equity capital
- Merger reserve
- Realised profits
- Redenomination reserve
- Regulatory capital
- Reserves
- Share capital
- Share premium
- Statutory reserve
- Undistributable reserves
- Unrealised profit
