1.

Tribunal Sanction

Next move would be to make an application to the Tribunal to get the sanction for the
reduction. The Tribunal shall give the notice of the application to the Central Government,
Registrar, SEBI (in case of listed companies) and creditors of the company to take into
consideration their representations. After this, it would confirm the reduction.

If no representation is received from the Central Government, Registrar, SEBI or the

creditors within a period of 3 months then it would be considered no objection is there
towards the reduction.

The Tribunal will not sanction the scheme unless:

 It is assured that every creditor of the company has either agreed to the said reduction
or their debt/claim has been secured or discharged.
 The accounting treatment, proposed by the company for such reduction is in
conformity with the accounting standards specified in section 133 or any other
provision of this Act and a certificate to that effect by the company’s auditor has been
filed with the Tribunal
 The order of confirmation of the reduction of share capital by the Tribunal is to be
published by the company in such manner as the Tribunal may direct.
The company, within 30 days of the receipt of the order’s copy, has to provide the Registrar
with the certified copy of the order of the Tribunal, who shall then register the same and issue
a certificate to that effect.1

2. https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=7191

1
https://letsgetlegal.in/section-66-of-the-companies-act-2013-and-the-provisions-with-respect-to-reduction-
of-share-capital-of-a-company/