https://www.taxtmi.com/caselaws?id=291350 Selective reduction of share capital affecting only identified shareholders was held permissible where approved by special resolution, supported by a substantial shareholder majority, and not opposed by creditors. The Tribunal accepted that valuation is not an exact science and upheld the valuer's use of a two-week VWAP, marketability discount and related assumptions as not ex facie unreasonable. However, deduction of dividend distribution tax from the per-share value was found discriminatory and prejudicial to the affected shareholders, and was disallowed. The reduction was therefore confirmed subject to payment of the full fair value without such deduction. en-us Fri, 27 Sep 2019 00:00:00 +0530 Sat, 07 Nov 2020 08:37:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291350 Selective reduction of share capital affecting only identified shareholders was held permissible where approved by special resolution, supported by a substantial shareholder majority, and not opposed by creditors. The Tribunal accepted that valuation is not an exact science and upheld the valuer's use of a two-week VWAP, marketability discount and related assumptions as not ex facie unreasonable. However, deduction of dividend distribution tax from the per-share value was found discriminatory and prejudicial to the affected shareholders, and was disallowed. The reduction was therefore confirmed subject to payment of the full fair value without such deduction. Case-Laws Companies Law Fri, 27 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291350