Section 4E in The State Financial Corporations (Amendment) Act, 2000
4E. Reduction of share capital.-(1) The Financial Corporation, with the prior approval of the State Government and the Small Industries Bank, may, by resolution passed in a general meeting of the shareholders, reduce its share capital in any way.
(2)Without prejudice to the generality of the foregoing power, the share capital may be reduced by-(a) extinguishing or reducing the liability on any of its equity shares in respect of share capital not paid- up; or(b)either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid- up share capital which is lost or is unrepresented by available assets; or(c)either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid- up share capital which is in excess of the wants of the Financial Corporation.
