https://www.taxtmi.com/caselaws?id=104180 A scheme of arrangement under the Companies Act, 1956 was approved for converting preference shareholders' stake into a loan and arranging payment to them. The objection based on section 80(1), that preference shares could be redeemed only out of profits or proceeds of a fresh issue, was rejected because the shareholders themselves participated in and unanimously consented to the compromise. Section 80(1) was treated as a protection against unilateral corporate action, not a bar to a consensual arrangement that was not prejudicial to the preference shareholders' interests. The scheme was sanctioned and the company was directed to make payment at the earliest. en-us Mon, 31 May 1999 00:00:00 +0530 Tue, 28 Feb 2012 11:45:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104180 A scheme of arrangement under the Companies Act, 1956 was approved for converting preference shareholders' stake into a loan and arranging payment to them. The objection based on section 80(1), that preference shares could be redeemed only out of profits or proceeds of a fresh issue, was rejected because the shareholders themselves participated in and unanimously consented to the compromise. Section 80(1) was treated as a protection against unilateral corporate action, not a bar to a consensual arrangement that was not prejudicial to the preference shareholders' interests. The scheme was sanctioned and the company was directed to make payment at the earliest. Case-Laws Companies Law Mon, 31 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104180