Reduction in share capital
Bhavya Mehra (Student) (33 Points)
02 March 2014
How does reduction in share capital affect interest of creditors?
Bhavya Mehra (Student) (33 Points)
02 March 2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 March 2014
In a limited company liability of members is limited to the extent of their shareeholding. It may happen that some shareholders may take back their amount and reduce share capital thus reducing net worth and also ultimately capacity of the company to pay to the creditors.
CAclubindia
