Reduction of capital

All types of reduction of paid up share capital are not within the purview of the provisions of section 100 of the Companies Act, 1956. The following categories of reduction of paid up share capital are out of the ambit of the provisions of section 100 and need not follow the procedure therein and reduction may take place in such cases without obtaining sanction of the High Court:—

(a) Forfeiture of partly paid-up shares;

(b) Redemption of redeemable preference shares;

(c) Cancellation of shares neither issued nor committed;

(d) Purchase of shares by a company on order of the High Court;

(e) Buy back of Securities from its members. [Section 77A]