https://www.taxtmi.com/caselaws?id=362124 Cancellation of excess shares issued on debenture conversion was treated as rectification rather than reduction of share capital because the error arose from an incorrect conversion premium and only required reclassification between paid-up capital and securities premium. The securities premium account is treated statutorily as paid-up capital for relevant purposes, so the correction did not diminish the overall capital base contemplated by the reduction provisions. Rectification of the register of members was therefore permitted, subject to compliance with the Companies Act and other formalities, while regulatory action for any FEMA contravention was left open. en-us Wed, 23 May 2018 00:00:00 +0530 Wed, 20 Jun 2018 11:26:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=362124 Cancellation of excess shares issued on debenture conversion was treated as rectification rather than reduction of share capital because the error arose from an incorrect conversion premium and only required reclassification between paid-up capital and securities premium. The securities premium account is treated statutorily as paid-up capital for relevant purposes, so the correction did not diminish the overall capital base contemplated by the reduction provisions. Rectification of the register of members was therefore permitted, subject to compliance with the Companies Act and other formalities, while regulatory action for any FEMA contravention was left open. Case-Laws Companies Law Wed, 23 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=362124