https://www.taxtmi.com/caselaws?id=335116 The commentary explains that securities premium is treated as paid-up share capital under section 52 of the Companies Act, 2013, and that while that provision permits use for the specific statutory purposes, any other use must follow the reduction procedure under sections 100 to 104 of the Companies Act, 1956. Where the articles authorise reduction and shareholders approve it by special resolution, the court's role is limited to checking whether the scheme is fair, reasonable and not prejudicial to shareholders, creditors or other stakeholders. It also notes that objections based on subsidiary investments and alleged RBI-related non-compliance do not, by themselves, bar approval if no legal prejudice is shown. en-us Fri, 18 Nov 2016 00:00:00 +0530 Sat, 26 Nov 2016 10:31:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335116 The commentary explains that securities premium is treated as paid-up share capital under section 52 of the Companies Act, 2013, and that while that provision permits use for the specific statutory purposes, any other use must follow the reduction procedure under sections 100 to 104 of the Companies Act, 1956. Where the articles authorise reduction and shareholders approve it by special resolution, the court's role is limited to checking whether the scheme is fair, reasonable and not prejudicial to shareholders, creditors or other stakeholders. It also notes that objections based on subsidiary investments and alleged RBI-related non-compliance do not, by themselves, bar approval if no legal prejudice is shown. Case-Laws Companies Law Fri, 18 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335116