Question

For a company to carry out capital reduction permission is required from the ______________.

• A. Competent Court / Tribunal
• B. Controller of Capital Issues
• C. Company Law Board
• D. Central Government

Answer 1

Answer: (A)

Competent Court / Tribunal

Capital reduction refers to reducing the face value of the shares of the company.

This is an exercise undertaken during internal reconstruction. Even though the articles and the memorandum allows the same, a competent court has to grant permission for it .