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Section 66 of the Companies Act, 2013 lays down the procedure to for reduction of capital of a company. Such a reduction involves repurchase of some (not all) shares by the company and a consequent cancellation of those shares.
The process to reduce the capital of a company:
- The company must first propose the reduction ...
Wazzeer Professional Network
ProfessionalHow can I reduce the share capital of my company?
-
Wazzeer Professional Network
ProfessionalSection 66 of the Companies Act, 2013 lays down the procedure to for reduction of capital of a company. Such a reduction involves repurchase of some (not all) shares by the company and a consequent cancellation of those shares.
The process to reduce the capital of a company:
- The company must first propose the reduction to be approved at a meeting of shareholders.
- Approval by shareholders must be by way of a special resolution at a general meeting, which requires a majority of 75% of the votes cast at the meeting.
- Thereafter, the company is required to make an application to the relevant High Court for its approval.
- If the High Court is satisfied after hearing the relevant parties, it will accord its sanction for the reduction of capital.
The reduction will take effect once the court’s order is filed with the Registrar of Companies.
over 4 years ago
View answer
How can I reduce the share capital of my company?
-
Wazzeer Professional Network
ProfessionalSection 66 of the Companies Act, 2013 lays down the procedure to for reduction of capital of a company. Such a reduction involves repurchase of some (not all) shares by the company and a consequent cancellation of those shares.
The process to reduce the capital of a company:
- The company must first propose the reduction to be approved at a meeting of shareholders.
- Approval by shareholders must be by way of a special resolution at a general meeting, which requires a majority of 75% of the votes cast at the meeting.
- Thereafter, the company is required to make an application to the relevant High Court for its approval.
- If the High Court is satisfied after hearing the relevant parties, it will accord its sanction for the reduction of capital.
The reduction will take effect once the court’s order is filed with the Registrar of Companies.
over 4 years ago
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