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Which of the following CANNOT be done under internal reconstruction?
AReducing the face value of shares
BIssuing new equity shares to raise fresh capital from public
CCancelling lost capital
DVarying the rights attached to different classes of shares
Answer & Solution
Correct answer: B. Issuing new equity shares to raise fresh capital from public
1. Step 1: Internal reconstruction is reorganisation of existing capital structure.
2. Step 2: Issuing fresh capital to outsiders is a separate corporate action (issue of shares).
3. Step 3: Hence (C).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_