https://www.taxtmi.com/caselaws?id=109292 Share premium may be treated as paid-up share capital only for the limited reduction-of-capital procedure and cannot be used by a banking company as a reserve fund or general loss-adjustment account. Reduction is permitted only within the specified statutory circumstances, where authorised by the articles and otherwise lawful. Banking law requires maintenance of reserves from profits but does not authorise transfer of share premium to reserves or its application to bad debts. Approval must also account for public interest and the effect on the bank's financial base and accounts. Applying share premium to write off irrecoverable or doubtful debts was therefore impermissible, and the proposed minute could not be confirmed. en-us Fri, 03 Sep 2004 00:00:00 +0530 Sat, 07 Apr 2012 15:33:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109292 Share premium may be treated as paid-up share capital only for the limited reduction-of-capital procedure and cannot be used by a banking company as a reserve fund or general loss-adjustment account. Reduction is permitted only within the specified statutory circumstances, where authorised by the articles and otherwise lawful. Banking law requires maintenance of reserves from profits but does not authorise transfer of share premium to reserves or its application to bad debts. Approval must also account for public interest and the effect on the bank's financial base and accounts. Applying share premium to write off irrecoverable or doubtful debts was therefore impermissible, and the proposed minute could not be confirmed. Case-Laws Companies Law Fri, 03 Sep 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109292