An unlimited company can reduce the share capital of the company in a manner specified in the articles of association of the company without the confirmation of NCLT. Comment.
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2020
An unlimited company can reduce the share capital of the company in a manner specified in the articles of association of the company without the confirmation of NCLT. Comment.
Answer & Explanation:
Section 66 of the Companies Act, 2013 provides that subject to confirmation by the Tribunal on an application by the company, a company limited by shares or limited by guarantee and having a share capital may, by a special resolution, reduce the share capital in any manner. Hence we can see that section 66 of the Companies Act, 2013 is applicable to a company limited by shares or a company limited by guarantee and having share capital. An unlimited company can reduce the share capital in the manner specified in the Articles and Memorandum of the company, as Section 66 of the Companies Act, 2013 is not applicable.
Topics: Corporate Restructuring
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