CA Inter P1 · Chapter 12 · Question 1 of 8
Under the Companies Act, 2013, a reduction of share capital by a company limited by shares (for example, by cancelling paid-up capital lost or unrepresented by available assets) requires:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A special resolution confirmed by the Tribunal under section 66
Explanation
Section 66 permits a company to reduce its share capital by a special resolution, subject to confirmation by the Tribunal on an application by the company. Ordinary or board resolutions alone are not sufficient for a reduction of capital.
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