Discussing the Reduction of Share Capital under Company Law
Chapter IV of the Companies Act of 2013 includes Section 66. It essentially lays out and covers the details behind a company’s share capital reduction. This section outlines the procedures a corporation must follow to lower its share capital and provides disclosures for doing so. Every corporation decreasing its share capital is required to follow this. Except when authorized by the tribunal, a reduction in share capital is illegal. The company’s share capital is the only security that the creditors have, and it is jealously guarded because any decrease in it affects the fund from which they will be paid. However, Section 66 of the Act of 2013 offers restricted authority for share capital reduction for general necessity. This research will include detailed information regarding the process and disclosure requirements for reducing share capital as well as significant judicial rulings on the subject.
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