Ways & Instances of Reduction of Capital under Section 66 Companies Act 2013

Ways & Instances of Reduction of Capital under Section 66 Companies Act 2013 1. Reduction of excess capital; 2. Cancellation of all the share capital as a part of scheme of arrangement; 3. Reduction to rectify an irregular repayment or purchase of shares by the directors; 4. Paying off part of the shares out of capital in excess of wants so as to enable the holders of the remaining shares in effect to acquire the interest of those paid off and become the only shareholders; 5. Cancelling shares of two members by agreement to repay the company the loss resulting from misappropriation of funds by an official; 6. Paying off or returning paid up capital not wanted for the purposes of the company; 7. Paying off unpaid up capital by issuing debentures or debenture stock in satisfaction; 8. Paying off and cancelling preference shares, in pursuance of a contract in the memorandum and articles binding on both preference and ordinary shareholders, by applying for the purpose a portion of the profits of the company; 9. Reducing the liability of shareholders in respect of uncalled or unpaid capital; 10. Reduction in excess of the wants of the company satisfied by the distribution of investments of greater value than the amount of the reduction; 11. Lost capital; 12. Reduction to reduce all shares of a company which has lost its register of members and cancel all shares the holders of which do not signify their wish to continue as members; 13. Paying off paid up capital on the footing that it may be called up again; 14. Where the amount unpaid on shares was cancelled and money was raised by the issue of new shares; 15. Writing off unpaid capital; 16. Reduction need not be qua all shareholders. For any Advice in above matter, feel free to contact Deep Advisory Services at +91-9913803369 or [email protected]. You can also follow us at https://dasgovernance.com or like Facebook Page Deep Advisory Services and stay complied.