Section 57 : Reduction of share capital

1) If a company intends to reduce its share capital , it may, by adopting a special resolution to that effect at its general meeting, reduce its share capital by obtaining approval of the Court and making necessary amendment to or alteration in the memorandum of association and articles of association, accordingly.

2) On receipt of approval of the Court pursuant to Sub-section (1), the company may reduce its share capital as follows:

(a) By reducing the capital to such amount as has been paid up where calls for payment of amount on shares are not fully paid up,

(b) By paying back any paid-up share capital,

(c) By devaluating the face value of shares where the company has sustained a big loss or suffered a natural calamity.

3) Notwithstanding anything contained in subsection (2), a company which has already become insolvent in accordance with the prevailing law shall not reduce its capital pursuant to this Section.