alleryStart learning →Share capital reduction is barred if the company is in arrears on what?
APayment of directors' fees
BRepayment of deposits
CPayment of trade bills
DPayment of audit fees
Answer & Solution
Correct answer: B. Repayment of deposits
The proviso to Section 66(1) forbids a reduction while the company is in arrears in repaying deposits or interest on them.
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