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2020 (5) TMI 660 - Tri - Companies LawReduction of share capital - Section 66(1) of the Companies Act, 2013 - Section 66(1) of the Companies Act, 2013 - HELD THAT:- Section 66(3) of Companies Act, 2013 states that no application for reduction of share capital shall be sanctioned by the Tribunal unless the accounting treatment, proposed by the company for such reduction is in conformity with the accounting standards specified in Section 133 or any other provision of this Act and a certificate to that effect by the company's auditor has been filed with the Tribunal. We have perused the minutes of the Annual General Meeting of the company held on 19.08.2019 (page 123 to 126 of the paper book). Page 123 of the Paper book records that "With the consent of the Members present, Mr. Balvinder Sahrawat was elected to chair the meeting." On Page 124 of the paper book, it is recorded that the meeting has passed the resolution for reduction of capital "as an ordinary resolution". The minutes of the meeting have been signed by the Chairman of the meeting on pg 126 of the paper book - thus, the company has not met the specific requirement of Section 66 of the Companies Act by passing 'Special Resolution' for reduction of share capital. The Company has also not complied with the requirements of its own Articles of Association. Petition dismissed.
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