Special Resolution For Cancellation of Shares

Special-Resolution-For-Cancellation-of-Shares
Special Resolution For Cancellation of Shares


“RESOLVED THAT pursuant to Section 61(1)(e) and other applicable provisions, if any, of the Companies Act, 2013, and article.... of the articles of association of the company, the authorised share capital of the company be and is hereby reduced from Rs.20,00,00,000/- (Rupees twenty crore) divided into 2,00,00,000 (Two crore) equity shares of Rs.10/- (Rupes ten) each to Rs.10,00,00,000 (Rupees ten crore) divided into one crore (1,00,00,000) equity shares of Rs.10/- (Rupees ten) each by cancelling one crore (1,00,00,000) equity shares of Rs.10/- (Rupees ten) each, which have not been taken or agreed to be taken by any person and consequently Clause V (share capital clause) of the memorandum of association of the company be and is hereby substituted with the following:

“V. The authorised share capital of the company is Rs.10,00,00,000 (Rupees ten crore) divided into one crore (1,00,00,000) equity shares of Rs.10/- (Rupees ten) each.”

Explanatory Statement

The company was incorporated on .......... with an authorised share capital of Rs.20,00,00,000/- (Rupees twenty crore) divided into 2,00,00,000 (Two crore) equity shares of Rs.10/- (Rupes ten) each. The present issued, subscribed and paid-up share capital of the company is Rs.7,00,00,000/- (Rupees seven crore) divided into 70,00,000 (Seventy lakh) equity shares of Rs.10/- (Rupees ten) each. The company has no proposal at hand which would require additional capital. The Board of directors of the company, at its meeting held on ............ had resolved to reduce the authorised share capial of the company by cancelling one crore (1,00,00,000) equity shares of Rs.10/- (Rupees ten) each, which have not been taken or agreed to be taken by any person. Therefore, the proposed special resolution is before the shareholders of the company for their consideration and approval.

None of the directors of the company is interested in the proposed resolution.
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