when can a company reduce its share capital without courts approval ?
Souvik Kumar Ghosh (CA Final) (1368 Points)
20 May 2011when can a company reduce its share capital without courts approval ?
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 20 May 2011
All types of reduction of paid up share capital are not within the purview of the provisions of section 100 of the Companies Act, 1956. The following categories of reduction of paid up share capital are out of the ambit of the provisions of section 100 and need not follow the procedure therein and reduction may take place in such cases without obtaining sanction of the High Court:—
(a) Forfeiture of partly paid-up shares;
(b) Redemption of redeemable preference shares;
(c) Cancellation of shares neither issued nor committed;
(d) Purchase of shares by a company on order of the High Court;
(e) Buy back of Securities from its members. [Section 77A]
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