Capital reorganization

Capital reorganization,

Definition of Capital reorganization:

  1. Fundamental, voluntary change in a firms capital structure, effected by altering the voting rights of the providers of equity capital and/or loan capital; such as by converting common stock (ordinary shares) into redeemable preferred stock (preference shares). Capital reorganization is resorted-to in case of serious financial and operating problems, such as loss of a major customer or the danger of an imminent bankruptcy. See also capital restructuring.

Meaning of Capital reorganization & Capital reorganization Definition