CS
463 Points
Joined March 2012
Issued Capital,
and further reduction of share capital is also means reduction in paid up share capital.
Logic is that Supposs a company have 50 Crore Paid up capital and lenders is giving fund on this ground and one day they come to know that now paid up is 5 crore because director have reduced it in that case lenders may face a difficulity to claim their money if default occurs,
Further Authorised is authorised , company may call or not, share holders are only responsible for subscibed shares not for unsubscribed , and hence unsubscirbed authorised capital can be changed in any nature i.e form equity to preference and vice versa
Regards,ACS Amit Kumar