TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, on confirmation of a reduction of capital that involves writing down or writing off a share premium account, the minute must refer to the share premium account.
Analysis: The share premium account is dealt with separately by section 56 of the Companies Act, 1948, but section 69 governs the registration and effect of the minute on a reduction of capital. If the minute were to record the remaining balance of the share premium account, that entry would become part of the memorandum by force of section 69(5). In view of the restriction in section 4 on alteration of the memorandum except as expressly provided, and the express powers in section 56(2) concerning application of the share premium account, the more convenient and sensible course was to treat the minute provisions as not requiring any reference to the share premium account in such a case.
Conclusion: The minute need not include any reference to the share premium account, and the proposed minute was approved subject to the minor deletion of the word "additional".
Ratio Decidendi: On a reduction of capital, a reference to a share premium account in the registered minute is unnecessary and should be omitted where its inclusion would cause the minute to operate as part of the memorandum contrary to the statutory scheme governing share premium accounts and alteration of the memorandum.
TaxTMI 
