https://www.taxtmi.com/caselaws?id=113603 Capital redemption reserve, once used for redemption of preference shares, cannot be redeployed for further scheme expenses because it is exhausted and subject to the statutory regime for reduction of share capital. The proposed transfer of capital reserve and the claimed benefit from buy-back of foreign currency convertible bonds to a reconstruction reserve account for writing off losses and expenses was also impermissible, as capital reserve is not a free reserve and the record did not show a lawful crystallised basis for the proposed use. Shareholder approval was incomplete because the special resolution covered only the capital redemption reserve adjustment and did not extend to the additional reserve transfers. The scheme therefore could not be sanctioned. en-us Thu, 31 Dec 2009 00:00:00 +0530 Sat, 18 Oct 2014 14:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113603 Capital redemption reserve, once used for redemption of preference shares, cannot be redeployed for further scheme expenses because it is exhausted and subject to the statutory regime for reduction of share capital. The proposed transfer of capital reserve and the claimed benefit from buy-back of foreign currency convertible bonds to a reconstruction reserve account for writing off losses and expenses was also impermissible, as capital reserve is not a free reserve and the record did not show a lawful crystallised basis for the proposed use. Shareholder approval was incomplete because the special resolution covered only the capital redemption reserve adjustment and did not extend to the additional reserve transfers. The scheme therefore could not be sanctioned. Case-Laws Companies Law Thu, 31 Dec 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113603