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Reduction of share capital in case of internal reconstruction is undertaken when a company has accumulated losses, overvalued assets, or fictitious assets that are not represented by real value. The objective is to reorganize the capital structure without liquidating the company, thereby presenting a true and fair view of its financial position. Internal reconstruction does not involve the formation of a new company; instead, it involves rearrangement of the existing capital structure with the approval of shareholders and the sanction of the Tribunal as per the provisions of the Companies Act. The ___ _____ _______ _______ ______ __________ ____ ________ ____ ___.
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