https://www.taxtmi.com/caselaws?id=246752 The court approved the reduction of share capital under Sections 100-104 of the Companies Act, 1956, finding the process compliant with legal requirements. It determined that the reduction was not for distributing profits but to provide an exit to investor shareholders. The court upheld the treatment of convertible preference shares as share capital, allowing for their reduction under equity capital norms. Selective reduction among shareholders was deemed fair and equitable, with approval from shareholders. The court allowed payment exceeding face value, treating it as "deemed dividend" under the Income Tax Act, with the company bearing the tax liability. en-us Mon, 31 Mar 2014 00:00:00 +0530 Mon, 21 Apr 2014 09:55:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246752 The court approved the reduction of share capital under Sections 100-104 of the Companies Act, 1956, finding the process compliant with legal requirements. It determined that the reduction was not for distributing profits but to provide an exit to investor shareholders. The court upheld the treatment of convertible preference shares as share capital, allowing for their reduction under equity capital norms. Selective reduction among shareholders was deemed fair and equitable, with approval from shareholders. The court allowed payment exceeding face value, treating it as "deemed dividend" under the Income Tax Act, with the company bearing the tax liability. Case-Laws Companies Law Mon, 31 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246752