PASUPATI ACRYLON LTD Vs. STATE OF U P

JUDGEMENT

(1.) Heard Shri R.P. Agarwal, learned Counsel for the petitioner.

(2.) This petition under Section 101 of the Companies Act, 1956 seeks confirmation of proposed reduction of equity share capital.

(3.) The petitioner company is doing business of manufacture of acrylic staple fibre. The board of directors of the company, in terms of Article 75 of its articles of association have resolved on 29.7.2005, that subject to sanction by High Court, the paid-up equity capital be reduced by 10 per cent in a manner that the face/nominal value of equity share shall remain at Rs. 10 each, but the number of paid-up equity shares shall be reduced from the existing 6,34,81,2-46 No. to 5,71,33,121 No. of Rs. 10 each and, accordingly, the number of shares held by each shareholder shall stand reduced by 10 per cent