Procedure for reduction of share capital.

procedure for the reduction of share capital:

1.special resolution

power to reduction capital must be granted in the articles of association of a company. if the articles do not grant such power,they may be allerted by a special resolution giving such power.

2.application to the tribunal:

the company shall then applly to the tribunal by petition for an order conforming the reduction.

Reduction of capital with the consent of the tribunal:

A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:

1.it may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.

2.it may ,either with or without extinguish or reducing liability on any way of its shares cancel paid up or unrespected for available of assets.

3.the pay off any paid up capital is in excess of the wants of a company.