A Company Reduce Their Paid-Up Share Capital :

A. Via a special resolution and confirmation by the Court (Section 116):

1. Special Resolution and Court Approval:
   - Company calls for a special resolution to reduce paid-up share capital.
   - Court approval is required even after the special resolution is passed.
2. Methods of Reduction:
   - Reduction can be done by extinguishing or reducing liability on shares, canceling lost/unrepresented share capital, or returning excess capital to shareholders.
3. Creditor Objections:
   - If reducing by extinguishing liability or returning excess capital, court requires creditor objections.
   - Court creates a list of objecting creditors and provides opportunities for others to join.
   - Court may dispense with consent under certain conditions.
4. Court Order and Registrar Lodgment:
   - After settling creditor issues, the court issues an order confirming the reduction.
   - The order is lodged with the registrar.
5. Member Liability in Case of Late Claims:
   - If a creditor surfaces later and the company can't pay, members at the order's lodging date are liable to contribute for the debt.
   - In case of winding up, the court may order contributors to settle the debt.

B. Via a special resolution supported by a solvency statement (Section 117):

1. Special Resolution and Solvency Requirement:
   - Company calls for a special resolution to reduce paid-up share capital.
   - Sends notice to IRB Director-General and registrar within 7 days, meeting solvency requirements.
2. Advertisement:
   - Advertise the notice in widely circulated newspapers in Bahasa and English within 7 days of the resolution.
3. Creditor Objections and Court Application:
   - Creditors can object within 6 weeks from the resolution date.
   - Court application can be made by creditors, served to the company, and notified to the registrar.
4. Court Decision on Objection:
   - Court cancels the resolution if debt is unsecured and no adequate safeguard.
   - Successful creditor claims lead to an order for the company to lodge the cancellation order with the registrar.
   - The court may dismiss the creditor’s application.
5. Registrar Lodgment:
   - If no objections, lodge the resolution with the registrar after 6 weeks and before 8 weeks from the resolution date.
   - If an application is dismissed, lodge necessary documents within 14 days from the last dismissed application.
6. Effect of Reduction:
   - The reduction takes effect when the resolution is recorded by the registrar.

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