What are the pre-conditions of reduction of share capital of a Company?

Reduction of share capital:

As contained in section 59 of the companies Act 1994, any company limited by share if it is authorized by its articles, by passing a special resolution, having approval from the Court can reduce the share capital as follows:

1. By reducing or extinguishing the liability on any shares not paid-up;

2.Cancel any paid-up share capital which is lost or not represented on the assets;
3.  Repay the capital, which is in excess of the wants of the company;
4. Reduce the share capital and shares as required by alteration of memorandum.