Explain the procedure for reduction of share capital.

The procedure for reduction of share capital as given under section 100 to 105 of the Companies Act 1956, is as follows: The company cannot reduce its share capital unless it is authorised by its articles. However, if the articles do not permit capital reduction, they may be altered by special resolution to enable the company to reduce its share capital. The company must pass a special resolution for reduction of capital. The company must apply to the court for an order confirming the capital reduction. The court may make an order confirming the capital reduction on such terms and conditions as it thinks proper, if it is satisfied that every creditor of the company entitled to object capital reduction has consented to the reduction or that his debt has been discharged or secured by the company. The court may also order the company to add the words "and reduced" to the name of the company for such period as it deems fit. The order of the court confirming the reduction must be produced before the registrar and a certified copy of the order and of the minutes of reduction should be filed with the registrar for registration.