https://www.taxtmi.com/caselaws?id=325844 Reduction of share capital may be sanctioned where the company's articles authorise it, the special resolution is approved by the requisite majority, and the proposal does not unfairly prejudice shareholders. Here, the company had been revived after liquidation under a restructuring scheme, the earlier preferential allotment was found lawful, and the public shareholding had been diluted to 5.47% of paid-up capital. The court accepted that the public shareholders were to receive a value well above the then-prevailing per-share value and that the resolution had overwhelming support. The proposed cancellation of public shareholders' holdings was therefore approved and the minute was permitted to be registered. en-us Tue, 29 Mar 2016 00:00:00 +0530 Thu, 31 Mar 2016 10:23:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325844 Reduction of share capital may be sanctioned where the company's articles authorise it, the special resolution is approved by the requisite majority, and the proposal does not unfairly prejudice shareholders. Here, the company had been revived after liquidation under a restructuring scheme, the earlier preferential allotment was found lawful, and the public shareholding had been diluted to 5.47% of paid-up capital. The court accepted that the public shareholders were to receive a value well above the then-prevailing per-share value and that the resolution had overwhelming support. The proposed cancellation of public shareholders' holdings was therefore approved and the minute was permitted to be registered. Case-Laws Companies Law Tue, 29 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325844