The correct answer is C. A special resolution and permission from company Law Board.
A company can reduce its share capital by passing a special resolution and obtaining the permission of the Company Law Board. The special resolution must be passed by a majority of not less than three-fourths of the members present and voting at a general meeting of the company, and the resolution must be filed with the Registrar of Companies within 30 days of its passing.
The Company Law Board may grant permission to reduce the share capital of a company if it is satisfied that the reduction is in the best interests of the company and its members. The Company Law Board may also impose conditions on the reduction, such as requiring the company to pay off its debts or to provide for the interests of its creditors.
Option A is incorrect because a resolution of the board of directors is not sufficient to reduce the share capital of a company. A special resolution is required.
Option B is incorrect because an ordinary
resolution is not sufficient to reduce the share capital of a company. A special resolution is required.Option D is incorrect because permission from the company Law Board is required in addition to a special resolution.