Cancellation of unsubscribed capital ?

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Prakash Shaw (Querist)
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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.)

NILAMKUMAR

NILAMKUMAR (Expert)
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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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