Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

PROCEDURE FOR REDUCTION OF SHARE CAPITAL UNDER COMPANIES ACT 2013

Corporate Laws / Banking / SEBI - By: - Mr. M. GOVINDARAJAN - Dated:- 9-1-2017 - Reduction of share capital Section 66 of Companies Act, 2013 ( Act for short) provides the procedure for the reduction of share capital. This section corresponds to Sections 100 to 105 of the Companies Act, 1956. This section came into effect from 15.12.2016. The Central Government for the purposes of this Section makes The National Company Law Tribunal (Procedure for reduction of share capital of Company) Rules, 20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t or is unrepresented by available assets; or pay off any paid up share capital which is in excess of the wants of the company, alter its memorandum by reducing the amount of its share capital and of its shares accordingly. No such reduction shall be made if the company is in arrears in the repayment of any deposits accepted by it, either before or after the commencement of this Act, or the interest payable thereon. Filing application before Tribunal Rule 2(1) provides that an application to con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing the details of the creditors of the company, class wise, indicating their names, addresses and amounts owed to them; a certificate from the auditor of the company to the effect that the list of creditors is correct as per the records of the company verified by the auditor; a certificate by the auditor and declaration by a director of the company that the company is not, as on the date of filing of the application, in arrears in the repayment of the deposits or the interest thereon; and a cer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hours of business of the company. A sum of ₹ 50/- is payable for inspection is payable. A sum of ₹ 10/- is payable per page for taking extracts of the list. Issue of notice Section 66(2) read with Rule 3 provide that the Tribunal shall, within 15 days of submission of the application, give notice, or direct that notice to be given to- the Central Government, Registrar of Companies, in all cases, in Form No. RSC - 2; the Securities and Exchange Board of India, in the case of listed c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

capital and the amount or estimated value or the debt or the contingent debt or claim or both for which such creditor s name is entered in the said list and the time within which the creditor may send his representations and objections. Advertisement Rule 3(3) provides that the Tribunal shall give directions for the notice to be published in Form No. RSC-4 within 7 days from the date on which the directions are given. The advertisement shall be given in English language in a leading English new .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed and the time fixed by the Tribunal within which the creditors of the company may send their objections. Rule 3(5) provides that the company or the person who was directed to issue notice and the publication in the newspaper shall, as soon as may be, but not later than 7 days from the date of issue of such notices, file an affidavit in Form RSC - 5 confirming the dispatch and publication of the notice. Dispensing with the notice Rule 3(6) provides that where the Tribunal is satisfied that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on shall simultaneously be sent to the company. In case no representation has been received from the Central Government, Registrar, SEBI or the creditors, by the Tribunal, within the said period it shall be presumed that they have no objection to the reduction. Company to represent Rule 5 provides that the company shall submit to the Tribunal, within seven days of expiry of period up to which representations or objections were sought, the representations or objections so received along with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Tribunal According to Section 66 (3) read with Rule 6(1) the Tribunal may, if it is satisfied that the debt or claim of every creditor of the company has been discharged or determined or has been secured or his consent is obtained, make an order confirming the reduction of share capital on such terms and conditions as he thinks fit. The order confirming the reduction of share capital and approving the minute shall be in Form No. RSC-6 on such terms and conditions as may be deemed it. The Tribu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the Tribunal, showing- the amount of share capital; the number of shares into which it is to be divided; the amount of each share; and the amount, if any, at the date of registration deemed to be paid up on each share, to the Registrar within 30 days of the receipt of the copy of the order, who shall register the same and issue a certificate in Form No. RSC - 7 to that effect. Non applicability Section 66 shall not apply to a buyback of its own securities by a company under Section 68. Liabi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction of share capital is, by reason of his ignorance of the proceedings for reduction or of their nature and effect with respect to his debt or claim, not entered on the list of creditors and after such reduction, the company is unable to pay the amount of his debt or claim- every person, who was a member of the company on the date of registration of the order for reduction by the Registrar shall be liable to contribute to the payment of that debt or claim, an amount not exceeding the amount wh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version