https://www.taxtmi.com/caselaws?id=193857 Selective reduction of share capital under the Companies Act, 1956 was treated as permissible where authorised by special resolution and subject to creditor protection, and the majority could determine the manner and incidence of reduction rather than being required to reduce all shares identically. The court noted that such a proposal does not become a buy-back merely because it affects only one class of shareholders, and it does not attract the procedure for compromise or arrangement when the statutory reduction route is followed. Fairness remained the controlling safeguard: the reduction was upheld because the affected shareholders could retain their shares, the valuation was supported by an independent report using recognised methods, and no oppression or inequity was shown. en-us Tue, 31 May 2005 00:00:00 +0530 Wed, 01 May 2024 14:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193857 Selective reduction of share capital under the Companies Act, 1956 was treated as permissible where authorised by special resolution and subject to creditor protection, and the majority could determine the manner and incidence of reduction rather than being required to reduce all shares identically. The court noted that such a proposal does not become a buy-back merely because it affects only one class of shareholders, and it does not attract the procedure for compromise or arrangement when the statutory reduction route is followed. Fairness remained the controlling safeguard: the reduction was upheld because the affected shareholders could retain their shares, the valuation was supported by an independent report using recognised methods, and no oppression or inequity was shown. Case-Laws Companies Law Tue, 31 May 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193857