Power of Ltd company to alter its share capital

Corporate & Other Laws

As per provision of sec 61(2)i.ecancellation of shares shall not be deemed to be a reduction of shares. Why? What is the logic behind it?

Naveen Kumar

CA Final

★ 3K+

26-Aug-22 06:51

509

Answers (2)

Best Answer

Here Sec61(2) refers to cancellation of unsubscribed shares , as the shares are already unsubscribed canceling these wont reduce the share capital.

Mounika Satya sai Mullapudi

CA Inter

★ 3K+

26-Aug-22 10:03

Cancellation applies to fully paid shres and reduction applies to partly paid shares

Seetha Ram

CA Final

★ 18K+

26-Aug-22 09:58