Reduction of share capital confirmed where shareholder approval, creditor protection, and financial disclosures satisfied statutory requirements.

A proposed reduction of paid-up equity share capital was confirmed because it had shareholder approval by special resolution, was intended to write off accumulated losses through an unabsorbed debit balance, and was shown not to prejudice creditors. The company's financial position and reserves were placed on record, and the Regional Director raised no objection. The court therefore approved the reduction minute and held that the company was not required to add the words "and reduced" to its name.

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Issues: Whether the proposed reduction of paid-up equity share capital should be confirmed, and whether the proposed minute should be approved without requiring the company to add the words "and reduced" to its name.

Analysis: The reduction was supported by a special resolution of the shareholders and was stated to be for writing off accumulated losses represented by unabsorbed debit balance. The company's financial position and reserves were placed on record, and the reduction was shown not to prejudice creditors. The Regional Director also raised no objection to the proposal. In these circumstances, the statutory requirements for confirming reduction of capital were satisfied.

Conclusion: The reduction of paid-up equity share capital was confirmed, the proposed minute was approved, and the company was not required to add the words "and reduced" to its name.

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