Reduction of capital

Companies Act 1956 - Section 100 to 104.

After the raising of share capital by issuing shares, the Companies Act gives a company the liberty to adapt to its changing circumstances. Hence, Section 100 of the Companies Act provides that a company can reduce its share capital in any manner. The following three instances of reduction of share capital as enumerated in Section 100 are only indicative and without prejudice to the generality of this power of the company:

(i)    Reducing or altogether extinguishing the paid-up value of shares

(ii)  Reducing nominal as well as paid-up value of shares

Find attached here analysis, need and procedures for Reduction of Capital.

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Jaideep Pandya