What does capital reorganization mean?

capital reorganization meaning in Law Dictionary

The work of altering the capital framework of an organization by combining or dividing shares to create shares of another type of price.

capital reorganization meaning in Business Dictionary

Fundamental, voluntary improvement in a strong's capital construction, effected by modifying the voting legal rights of providers of equity money and/or loan money; such by converting common stock (ordinary shares) into redeemable preferred stock (preference shares). Capital reorganization is resorted-to in case there is severe financial and operating issues, such as for instance reduced an important buyer or perhaps the danger of an imminent personal bankruptcy. See in addition capital restructuring.