i cant understand

Others 426 views 3 replies

According to section 100 of the compnies act,1956 reduction of capital may take the following forms.

PAYING OFF ANY PAID UP SHARE CAPITAL

so my question is when can a company will like to pay off its paid up share capital? if it is paying because of surplus capital then why uptill noe dividend hasnt been declared? why company is not making investment? can company call that money back which it has one time paid for the purpose reducing paid up capital? can prctically companies pay off their paid up capital? if yes then example.

Replies (3)

paying off means the co is buying its shares its like buy back

none of my answer matches with your solution.

reducing paid up capital is to increase the NAV of the residue shares, by buyback of shares and cancelling the same.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register