https://www.taxtmi.com/caselaws?id=112045 A reduction of capital by adjusting the share premium account and general reserve may be sanctioned under the Companies Act, 1956 where it is authorised by special resolution, follows the prescribed procedure, and is supported by proper notice and advertisement. The court accepted that the proposal had stock exchange approval and attracted no objections, and that it did not diminish liabilities, repay paid-up capital, or otherwise prejudice creditors or shareholders. On that basis, the capital restructuring was treated as a permissible change in the company's financial structure and the reduction was confirmed, with consequential registration and publication directions. en-us Fri, 28 Dec 2007 00:00:00 +0530 Wed, 17 Dec 2014 10:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112045 A reduction of capital by adjusting the share premium account and general reserve may be sanctioned under the Companies Act, 1956 where it is authorised by special resolution, follows the prescribed procedure, and is supported by proper notice and advertisement. The court accepted that the proposal had stock exchange approval and attracted no objections, and that it did not diminish liabilities, repay paid-up capital, or otherwise prejudice creditors or shareholders. On that basis, the capital restructuring was treated as a permissible change in the company's financial structure and the reduction was confirmed, with consequential registration and publication directions. Case-Laws Companies Law Fri, 28 Dec 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112045