Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2015 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 323 - HC - Companies LawApplication for reduction of Paid-up share capital under Section 100(1) of the Companies Act, 1956 read with Rules 46 and 47 of the Companies (Court) Rules, 1959 - Minimum paid-up equity share capital not infused by the subscribers to the Memorandum of Association - Change in business plan - Held that:- It was submitted by petitioner that the proposed reduction in capital neither involves in any financial outlay/outgo on the part of the petitioner company nor does it directly or indirectly involve in any outflow of the petitioner company’s asset to its shareholders. Further, the petitioner company has not carried on any business since the date of its incorporation and it does not have any creditors or any other stakeholders whose rights would be prejudice by the proposed reduction. By order dated 5th February, 2015, notice of this petition was directed to be issued to the Regional Director, Northern Region. Since the petitioner company has not commenced its business operations and it does not have any creditor or stakeholders, therefore, the requirement to follow the procedure laid down under Section 101(2) of the Companies Act, 1956 is dispensed with.In response to the notice issued, Mr. A. K. Chaturvedi, Regional Director, Northern Region, has filed his report dated 17th March, 2015 raising no objection to the proposed reduction of share capital of the petitioner company. In view of the averments made in the petition and there being no creditor, the petition is hereby allowed. The resolution passed by the petitioner company in its Extra Ordinary General Meeting held on 8th December, 2014 for reduction of its share capital is approved. The 'Form of Minutes' proposed to be registered under Section 103(1)(b) and annexed to the petition as Annexure ‘G’, is also approved. - Application for reduction in paid up share capital approved.
|