Question

Reduction of share capital requires the permission of

Answer 1

Reduction of share capital is the reduction in the of issued, subscribed and paid capital of the company. When company is facing losses, it tries to cut its cost by reducing shared capital. 

Reduction of share capital is only possible under set provision under the Act 2006 of Reduction of Share Capital. A tribunal decides of a company can reduce its share capital.

Answer 2

Answer:

Reduction of share capital is permitted by National Company Law Tribunal under the set provision under the Act 2016 section 66.

Explanation:

The National Company Law Tribunal only allows the reduction of share capital when there is loses incurred by a certain company.

This permission can also be guaranteed when the company is short of paying off the shares provided to them earlier.