Write notes on the following : (ii) Cancellation of share capital

According to Section 61(1)(e) of the Companies Act, 2013, a limited company having a share capital may, if so authorised by its articles, alter its memorandum in its general meeting to cancel its shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled. In terms of Section 61 (2) of the Act such cancellation of shares shall not be deemed to be a reduction of share capital. Here the cancellation of shares means cancellation of shares of a particular unissued class of shares and not the paid up share capital. Section 64 of the Act makes it obligatory on the part of a limited company having share capital, which has cancelled any share capital, to give notice thereof to the Registrar, within thirty days of the passing of the resolution, specifying the shares cancelled.