https://www.taxtmi.com/caselaws?id=103632 The Companies Act, 1956 permits reduction of share capital by special resolution with court confirmation, including extinguishment of liability on unpaid or partly paid shares, provided the procedure is lawful. The court must also be satisfied that creditors are protected, dissenting shareholders are not unfairly prejudiced, and the scheme is fair and equitable before confirming the reduction and any consequential alteration of the memorandum of association. The text notes that these safeguards were treated as satisfied where disputed creditor dues were secured, no shareholder objection was shown, and the reduction was considered beneficial and non-prejudicial. en-us Mon, 30 Mar 1998 00:00:00 +0530 Fri, 24 Feb 2012 11:11:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103632 The Companies Act, 1956 permits reduction of share capital by special resolution with court confirmation, including extinguishment of liability on unpaid or partly paid shares, provided the procedure is lawful. The court must also be satisfied that creditors are protected, dissenting shareholders are not unfairly prejudiced, and the scheme is fair and equitable before confirming the reduction and any consequential alteration of the memorandum of association. The text notes that these safeguards were treated as satisfied where disputed creditor dues were secured, no shareholder objection was shown, and the reduction was considered beneficial and non-prejudicial. Case-Laws Companies Law Mon, 30 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103632