A company limited by guarantee and having share capital or company limited by share capital may alter its a share capital. By amending its memorandum of association by reducing the amount of its share capital and of its share accordingly. The procedure is however marked with clear line restrictions and checks to prevent fraud and protect the interests of creditors of the company.
reduction of capital may be effected in several ways.
1. Where redeemable preference share are redeemed.
2. Where share are perfected for non payment of calls.
Posted 4 years ago by Neeraj bhagat
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