The Procedure for Reduction of Share Capital.
How to Reduce Share Capital of the Company
After company registration if any time the directors or members of the company decide that they want to reduce the share capital of the company following procedure should be followed as per the articles of companies’ ordinance, 1984:
After company registration if a company may extinguish or reduce its liability on unpaid shares by reducing the capital to that extent.
After company registration if some of the assets of the company is lost for example due to fire the capital of the company does not reflects such assets and therefore in such conditions the company may opt for reduction of share capital.
After company registration if at any time the company feels that any paid up capital is in excess of its wants it may opt for reduction of such capital.
Stock Exchanges are informed about the reduction of share capital.
Alteration shall be mentioned in all subsequent copies of memorandum and articles of association.
Words and reduced shall be added for one year or any other period if fixed by the court to the name of the company.