Comment on the following: A company incorporated under the Companies Act, 2013 does not have the right to reduce its share capital on selective basis.

The company has every right to reduce its share capital on selective basis. The statement is incorrect. Reference The provisions of section 66 have not been enforced so far. Section 100 of Companies Act, 1956 is still applicable in this context. Accordingly, subject to confirmation by the court, a company limited by shares or a company limited by guarantee and having a share capital may, if authorized by its articles, by special resolution, reduce its share capital in any way and in particular and without prejudice to the generality of the forgoing power, may: Reduce or extinguish the liability on any of its shares in respect of share capital not paid up e.g., where the shares are of ₹100 each with ₹75 paid-up reduce them to ₹75 fully paid-up shares and thus relieve the shareholders from liability on the uncalled capital of ₹25 per share; Either with or without extinguishing or reducing liability on any of its shares, cancels any paid up share capital which is lost, or is unrepresented by available assets or Either with or without extinguishing or reducing liability on any of its shares, pay of any paid up share capital which is in excess of the wants of the company where the shares are fully paid-up, reduce them to ₹75 each and pay back, ₹25 per share, and By following a combination of any of the preceding methods.