#Accounting management #Working capital

 A decrease in working capital can be voted if it is considered that the amount available in the working capital is too large, and that part of it is superfluous.

✋ The General Assembly may vote to decrease the working capital with an absolute majority (50% + 1). The “surplus” will then be returned to the co-owners.

 Good to know: A decrease in working capital almost never happens.

 

For example: For several years, my co-ownership’s working capital has contained €3500. However, over the last five years, we have observed that we never use more than 1680€ of this working capital per year.

At the General Assembly, we decided to reduce the working capital to 2000€ in order to keep a comfortable “safety cushion”.

The working capital is therefore reduced by 1500€ (2000€ + 1500€ = 3500€). This 1500€ “surplus” will be redistributed among the co-owners according to their shares.