07 March 2017
Can a public limited company reduce its AUTHORIZED Share capital ? X company's authorized share capital is Rs. 1000 Crores divided in 100 Crore shares of Rs. 10 each and paid up capital is Rs. 200 Crores. Can X reduce is authorized share capital to Rs. 300 crores divided into 30 crore share of Rs. 10 each? If yes, will the Company get back the stamp duty & fees it had paid?
The reduction of share capital may- extinguish or reduce the liability of any of its shares in respect of the share capital not paid up; or either with or without extinguishing or reducing the liability on any of the shares- cancel any paid up share capital which is lost or is unrepresented by available assets; or pay off any paid up share capital which is in excess of the wants of the company,
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