https://www.taxtmi.com/caselaws?id=109439 A court examined whether a reduction of paid-up equity capital that extinguishes shares of a non promoter minority without offering a genuine option is lawful. Applying the statutory power to reduce capital and principles requiring reductions to be fair and equitable, the court found two distinct shareholder subgroups and that the non promoter minority (4.46%) were to be compulsorily extinguished without real choice. The process was held to deny protections available under a scheme of arrangement and to risk unfairness; accordingly the reduction proposal was not acceptable and the petition for sanction was dismissed. en-us Thu, 16 Oct 2003 00:00:00 +0530 Tue, 10 Apr 2012 12:09:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109439 A court examined whether a reduction of paid-up equity capital that extinguishes shares of a non promoter minority without offering a genuine option is lawful. Applying the statutory power to reduce capital and principles requiring reductions to be fair and equitable, the court found two distinct shareholder subgroups and that the non promoter minority (4.46%) were to be compulsorily extinguished without real choice. The process was held to deny protections available under a scheme of arrangement and to risk unfairness; accordingly the reduction proposal was not acceptable and the petition for sanction was dismissed. Case-Laws Companies Law Thu, 16 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109439