IndigoLearn

Sec 66

Ma'am how come SH will accept cancellation of paidup capital without paying back amount to them. It's not fair in shareholders point of view..


Siva Kumar

Siva Kumar

CA Inter

715

07-Jan-21 21:40

8

Answers (2)

This happens in case of a company which is undergoing internal reconstruction. If the company does not have enough money to pay outside liabilities, creditors and shareholders may agree to give a part of the claim to ensure that the company continues. You will understand this in more detail in Advanced Accounting - Internal Reconstruction.


Suraj Lakhotia

Suraj Lakhotia

Admin

08-Jan-21 17:32

Ok sir


Siva Kumar

Siva Kumar

CA Inter

715

08-Jan-21 18:29