https://www.taxtmi.com/caselaws?id=109276 Adjustment of share premium against a permanent diminution in investment value may be undertaken through capital reduction where the articles permit reduction of the Share Premium Account by special resolution. The prescribed procedure under the Companies Act, 1956, including notice to stakeholders, must be followed. Where the adjustment neither reduces unpaid-capital liability nor returns paid-up capital to shareholders, and shareholders and creditors raise no objections or suffer prejudice, confirmation may be granted. Judicial scrutiny focuses on legal compliance and protection of stakeholder and public interests rather than commercial review of the company's decision. en-us Wed, 21 Jul 2004 00:00:00 +0530 Wed, 12 Jun 2024 12:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109276 Adjustment of share premium against a permanent diminution in investment value may be undertaken through capital reduction where the articles permit reduction of the Share Premium Account by special resolution. The prescribed procedure under the Companies Act, 1956, including notice to stakeholders, must be followed. Where the adjustment neither reduces unpaid-capital liability nor returns paid-up capital to shareholders, and shareholders and creditors raise no objections or suffer prejudice, confirmation may be granted. Judicial scrutiny focuses on legal compliance and protection of stakeholder and public interests rather than commercial review of the company's decision. Case-Laws Companies Law Wed, 21 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109276