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2021 (2) TMI 1088 - Tri - Companies LawSeeking approval for reduction of share capital - Section 66 of the Companies Act 2013 - HELD THAT:- The investments by shareholder in the equity share capital of the company are non- repatriable basis, hence the provisions of FEMA and the regulations made there under are not applicable to the company. The proposed reduction would not involve either diminution of any liability in respect to unpaid share capital or the payment to any shareholder, accordingly the provisions of Section 66(1)(a) of the Act will not be applicable. Further the net worth of the company shall remain positive and therefore not in any way have any adverse effect on the company’s ability to honor its commitments and obligations. Notice has been served to income tax department. However, no objection has been raised by the Income tax department - In response to the observation made by RD in the report, the applicant has stated that the queries raised by the RD has already been dealt with vide compliance affidavit dated 25.02.2020. Further on 19.01.2021, during the hearing Ld. Counsel for RD made statement that they have perused the compliance affidavit and as per instructions the queries/objections of the department stands satisfied. Hence, they have no objection to the application being allowed. That the reduction of the share capital of the above company as resolved by the Board Of Directors at the Extra Ordinary General meeting held on the13.12.2019 is allowed - That the minutes for reduction of share capital as specified under section 66(5) of the Companies Act, 2013 is be and hereby approved. That a certified copy of this order including the minute as approved, be delivered to the Registrar of Companies within thirty days of receipt of the order - Application allowed.
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