Procedure for Reduction of Share Capital

The National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016 lay down the complete procedural framework that companies must follow when seeking to reduce their share capital under section 66 of the Companies Act, 2013.

These rules specify the form and manner of filing applications before the Tribunal, the required documents and declarations, and the detailed process for issuing notices to creditors, the Registrar of Companies, the Central Government, SEBI, and other regulatory authorities.

They further mandate the publication of notices, invite objections and representations, and set out how the Tribunal must evaluate such objections through hearings, enquiries, and verification of creditor protection measures.

The rules also describe how the Tribunal passes its final order confirming the reduction, the preparation and approval of the statutory minute, and the filing requirements after the order is sanctioned.