Ritesh Kumar Batsh (Asst. Accounts Manager) (63 Points)
30 July 2015hi,
Please advise us complete process for reduction of Authorized & Paid Up capital.
Available Surplus is less then Paid Up capital
Regards
Ritesh
prakash
(Company Secretary)
(1352 Points)
Replied 30 July 2015
Dear Ritesh,
The company cann't reduce its authorized capital but it can reduce paid up capital by following procedure laid down and filing petition with high court of concern state and it will take 6 to 9 months time, i advise you to consult company secretary/Advocate for same.
Ritesh Kumar Batsh
(Asst. Accounts Manager)
(63 Points)
Replied 30 July 2015
Thanks Prakash,
For Reduction of Paid Up Company can go for Buy Back ?
I Think Company buy back his 25% of paid Up in a Single Financial Year ? is it valid & applicable ?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 31 July 2015
Reduction of authorised capital is not possible. Companies Act pr
ovides for following ways of reducing paid up capital:
a) Reduction of capital u/s 100 of CA 1956 with approval of High Court
b) Scheme of arrangement u/s 391-394 of CA 1956 with approval of High Court
c) Buy back of shares u/s 67 of CA 2013
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