Cancellation of unsubscribed capital ?
This query is : Resolved
Prakash Shaw
(Querist)
21 April 2013
We have issued 1.3 crore Redeemable Pref. Share on private placement basis out of which only 85 lakh shares have been subscribed and allotted. Now, we want to cancel the unsubscribed capital i.e. 45 lakh.
What is the procedure for such cancellation and if we cancel the said shares, whether the authorised capital will be reduced by that amount ?
(The Co. is listed Co.)
What is the procedure for such cancellation and if we cancel the said shares, whether the authorised capital will be reduced by that amount ?
(The Co. is listed Co.)
NILAMKUMAR
(Expert)
25 April 2013
call meeting of shareholders and pass an ordinary resolution as this process is known as diminution of share capital.No there will be no reduction in authorised capital because of the diminution ( cancellation of unsubscribed capital)
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