https://www.taxtmi.com/caselaws?id=335116 Reduction of a securities premium account may be used to set off accumulated losses through the capital-reduction mechanism where the articles permit it and shareholders approve it by special resolution. Although the account is treated as paid-up share capital and may be used without court approval for specified statutory purposes, other uses are not prohibited and may proceed under the reduction provisions. Approval depends on whether the scheme is fair, reasonable and non-prejudicial to shareholders, creditors and other stakeholders. Investments in subsidiaries and alleged RBI-related non-compliance did not, on the stated facts, defeat the shareholder-approved adjustment. The reduction and adjustment of accumulated losses were approved. 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 Reduction of a securities premium account may be used to set off accumulated losses through the capital-reduction mechanism where the articles permit it and shareholders approve it by special resolution. Although the account is treated as paid-up share capital and may be used without court approval for specified statutory purposes, other uses are not prohibited and may proceed under the reduction provisions. Approval depends on whether the scheme is fair, reasonable and non-prejudicial to shareholders, creditors and other stakeholders. Investments in subsidiaries and alleged RBI-related non-compliance did not, on the stated facts, defeat the shareholder-approved adjustment. The reduction and adjustment of accumulated losses were approved. Case-Laws Companies Law Fri, 18 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335116