Question

in internal reconstruction surrender of fully paid shares amounts to what​

Answer 1

Answer:

ADVERTISEMENTS: (1) Each share shall be subdivided into ten fully paid equity shares of Rs 10 each. (2) After such subdivision, each shareholder shall surrender to the Company 90% of his holding, for the purpose of re-issue to debenture holders and creditors so far as required, and otherwise for cancellation.

Explanation:

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Answer 2

in internal reconstruction surrender of fully paid shares amounts to what:

ADVERTISEMENTS:

(1) Each share shall be subdivided into ten fully paid equity shares of Rs 10 each.

(2) After such subdivision, each shareholder shall surrender to the Company 90% of his holding, for the purpose of re-issue to debenture holders and creditors so far as required, and otherwise for cancellation.

A temporary account created to carry out the internal rehabilitation is the Capital Reduction Account. The account gets closed once the plan is implemented. The sacrifice made by the creditors, shareholders, and holders of debt instruments is reflected in the capital reduction account.

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