Reduction Of Share Capital Does Not Exempt Company From Fulfilling Other Statutory Obligations: NCLT Ahmedabad

In a ruling by the National Company Law Tribunal (NCLT) Ahmedabad, the court approved an application under Section 66 of the Companies Act, 2013, for the reduction of share capital but clarified that this does not exempt companies from fulfilling other statutory obligations. The order was passed for a company seeking to restructure its capital base while ensuring compliance with various regulatory requirements. The tribunal emphasized that reducing share capital is a corporate restructuring measure and should not be used to evade statutory liabilities, including tax or other regulatory dues. This ruling highlights the interplay between corporate governance and compliance obligations, ensuring that companies cannot misuse restructuring provisions to avoid responsibilities.