https://www.taxtmi.com/caselaws?id=196628 Composite schemes of arrangement involving demerger and reduction of share premium or capital may be sanctioned where the company's articles permit reduction, affected members and creditors receive due notice, and the scheme obtains the required approval. Reduction procedures under the Companies Act, 1956 require substantial compliance when reduction is integral to the arrangement. Informed unanimous or overwhelming shareholder assent may satisfy the substantive special-resolution requirement under the Duomatic principle, even without separately worded approval for reduction. The scheme must also be fair, reasonable, and non-prejudicial to members and creditors. These conditions support confirmation of the reductions as part of the sanctioned restructuring. en-us Tue, 12 Mar 2013 00:00:00 +0530 Wed, 29 Dec 2021 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=196628 Composite schemes of arrangement involving demerger and reduction of share premium or capital may be sanctioned where the company's articles permit reduction, affected members and creditors receive due notice, and the scheme obtains the required approval. Reduction procedures under the Companies Act, 1956 require substantial compliance when reduction is integral to the arrangement. Informed unanimous or overwhelming shareholder assent may satisfy the substantive special-resolution requirement under the Duomatic principle, even without separately worded approval for reduction. The scheme must also be fair, reasonable, and non-prejudicial to members and creditors. These conditions support confirmation of the reductions as part of the sanctioned restructuring. Case-Laws Companies Law Tue, 12 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=196628