How to extinguish shares???

8390 views 6 replies

zankhana Trivedi

Company Secretary

462 Points Joined April 2009

Dear All..

Can anyone guide me on the procedural aspects for extinguishing shares in case of Demat as well as physical holding??

Here the question for extinguishing shares arise becasue the Company is cancelling its share Capital under section 100 of the Companies Act, 1956 which is in excess of wants of the Company. To be very clear the Company is cancelling its non promoter holders shares. After such reduction the Company will have only Promoter holders & will become 100% wholly owned subsidiary. So once the Court will pass the order for such cancellation the Company will have to extinguish its shares..

In this regard i would like to know what could be the Procedural aspects regarding intimating NSDL/CDSL & R & T A for extinguishing the shares.. In case of NSDL/CDSL for extinguishing shares, the depository will debit the accout of holders.. but how it will be done that i want to know.. In case of R & T A which kind of documents to be submitted for extinguishing the shares????

Thanks & Regards

Replies (6)

HARDIK

COMPANY SECRETARY NCFM (Corporate Gover

664 Points Joined October 2008

It is like division of share however in your case paid up value decrease. RTA will modify the value in its system. Kindly contact RTA. Mainly Court order will be sufficient for RTA to make modification in its sufficient. Also intimate Concerned stock exchanges.

zankhana Trivedi

Company Secretary

462 Points Joined April 2009

Thanks Mr. Hardik,

As the Company is delisted Company no need to send intimation to Stock exchagnes...Mr. Hardik do u have any idea about extinguishing shares in case of Demat???

HARDIK

COMPANY SECRETARY NCFM (Corporate Gover

664 Points Joined October 2008

In RTA there is software system that i show when in one of our case there was division of shares. They make modification in such software and changed automatically. In NSDL and CDSL you have to contact and ask them if any specific requirement for such change or court order will be suffice.