' MRS. AYESHA A. MALIK, J.---Through this petition, under Section 97 of the Companies Ordinance, 1984 (1984 Ordinance), the petitioner seeks consideration of reduction of capital from 9,456,752 of Rs,10 each to.Ordinary share face value equivalent to Rs,10 each to Rs,7,000,000 ordinary shares divided into 700,000 ordinary shares of Rs,10 each.
2. According to the petition, petitioner is a company limited by shares. As per the Memorandum and Articles of Association of the Company, the authorized capital of the company at the time of incorporation was Rs,100,000,000 divided into 10,000,000 ordinary shares of Rs,10 each with the power to increase, reduce, consolidate or otherwise reorganize the share capital and to divide the shares of the company into different classes in accordance with the provisions of 1984 Ordinance.
The shareholder directors of the petitioner company through a special resolution held in its meeting on 20-12-2013 unanimously decided that the paid up capital of the petitioner company from Rs,9,456,752 be reduced to Rs,7,000,000 divided into Rs,7,000,000 ordinary shares of Rs,10 each.
3. Learned counsel for the petitioner argued that the reduction of capital would not in any manner affect the ownership or voting rights of the shareholders. Similarly the same will not be detrimental to the rights of any director, shareholder or the petitioner company, hence it may be allowed.
Further, argued that presently the petitioner company does not have any creditors. The previous creditor is in Court to state that no amount is due to it and they have no objection to the reduction.
4. Learned counsel for the respondent SECP stated that the respondent SECP has no objection.
Further stated that there are no creditors of the petitioner company, as such no prejudice is caused.
5. I have heard the learned counsel for the parties and reviewed the record available on the file.
The petitioner A company was incorporated on 20-3-2006. The resolution dated 20-12-2013 is duly registered with the Securities and Exchange Commission of Pakistan (SECP) under Form 26. There are presently no creditors and no prejudice is caused to the shareholders.
6. In view of the aforesaid, this petition is allowed with the direction that the petitioner company can reduce its A capital from Rs,9,456,752 of Rs,10 each to ordinary share face value equivalent to Rs,10 each to Rs,7,000,000 ordinary shares divided into 700,000 ordinary shares of Rs,10 each as per the shareholders special resolution dated 20-12-2013 which reduction stands confirmed. The petitioner company is exempted from writing the words 'and reduced' as part of the name of the company upon reduction, of its capital.