Diminution of share capital

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Savita

Savita (Querist)
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03 April 2010 What is meant by the term "diminution" of share capital? (Pl. quote the relevant section)

Thank you.

CS vanita

CS vanita (Expert)
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16 April 2010 Diminution of capital refers to the cancellation of shares which have not been taken or agreed to be taken by any person. It is differ from the reduction of capital and it is treated as an alteration of capital[Section 94(1)(e)].

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Savita

Savita (Querist)
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16 April 2010 Please explain the meaning of the phrases
"shares which have not been taken" or "agreed to be taken".

Does that mean issued but unsubscribed shares?

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