Section 4E
Reduction of share capital.
The State Financial Corporations Act, 1951
About this Act
An Act to provide for the establishment of State Financial Corporations.
1[4E. Reduction of share capital.--(1) The Financial Corporation, with the prior approval of the State
Government and the Small Industries Bank, may, by resolution passed in a general meeting of the
shareholders, reduce its share capital in any way.
(2) Without prejudice to the generality of the foregoing power, the share capital may be reduced by--
(a) extinguishing or reducing the liability on any of its equity shares in respect of share capital not paid-up; or
(b) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid-up share capital which is lost or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid-up share capital which is in excess of the wants of the Financial Corporation.]
(2) Without prejudice to the generality of the foregoing power, the share capital may be reduced by--
(a) extinguishing or reducing the liability on any of its equity shares in respect of share capital not paid-up; or
(b) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid-up share capital which is lost or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid-up share capital which is in excess of the wants of the Financial Corporation.]
Notes
1. Ins. by Act 39 of 2000, s. 6 (w.e.f. 5-9-2000).