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2017 (8) TMI 758 - Tri - Companies LawReduction of Share Capital - whether the interests of those members of the public who may be induced to take shares in the company are secured - whether the reduction is fair and equitable as between different classes of shareholders? - Held that:- The question of reduction of capital is a matter of domestic concern, one for the decision of the majority of the shareholders of the Company. Since the decision for reduction is based on commercial considerations undertaken by businessmen who are in the best position to know of the necessities and interests of the company concerned, in the absence of serious allegations as regards the bona fides of the proposed scheme, the Courts are hesitant. In interfering with the view of the majority. The Court has to consider whether the interests of those members of the public who may be induced to take shares in the company are secured and whether the reduction is fair and equitable as between different classes of shareholders. See Reckitt Benckiser (2005 (5) TMI 665 - DELHI HIGH COURT) The present Company Application for reduction of share capital is deserved to be allowed. Hence it is allowed and made absolute in the terms of its prayer clause. In the result the petitioner company is dispensed with the use of word “and reduced” in the name of the petitioner company or even in the memorandum of association, as no special reason is shown by the Central Government to be existing which may call for giving such direction by this Tribunal to the Company.
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