What is exact meaning of diminution of share capital?
Is it of issued capital or authorised capital?
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Diminution of share capital
Replies (4)
Diminution of capital means the CANCELLATION of UNSUBSCRIBED part of ISSUED CAPITAL. There should be authorization in ARTICLES of the company and it can be effected by passing OR. Diminution is different from reduction of share capital.
Hence, it is the cancellation of the issued capital which is unsubscribed.
Hence, it is the cancellation of the issued capital which is unsubscribed.
Thank you so much
yeah welcome
| Originally posted by : shreyansh khandelwal | ||
 |
Diminution of capital means the CANCELLATION of UNSUBSCRIBED part of ISSUED CAPITAL. There should be authorization in ARTICLES of the company and it can be effected by passing OR. Diminution is different from reduction of share capital.Hence, it is the cancellation of the issued capital which is unsubscribed. |  |
If the Authorized Share Capital of a company is Rs. X and Paid Up Capital of a Company is Rs. 0.1 x X, then after Diminution Will the Authorized Capital be Rs. 0.1 x X?
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