This was why I was thinking that it is a paper thing, typically the stated capital equals a stock's stated value times the amount of outstanding shares. Typically you see a stock's stated value as something like $.001 and is usually used for accounting purposes. It looks like there are 2 ways of reducing capital, change the number of outstanding shares (buyback, reverse split, ect.) or to reduce the stated value. Like you I am suspicious of this as to what it means for the shareholder and look forward to others' input.