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This is an unusual corporate action which involves the return to the shareholders of a company of part of the capital which they contributed to the company. Capital reductions are not liable for dividend withholding tax (DWT). For example, Etion (ETO) conducted a capital reduction of R186,25m on 1st November 2021 after the disposal of its interest in Law Trusted Third Party Services (Pty) Ltd. The capital reduction was for 33c per share to the issued shareholders of 564 411 033 ordinary shares as at 29th October 2021.