Niharika Maske has presented us with a case analysis of Elpro Internationals Ltd., the recent judgement passed by the Bombay High Court.
Abstract
The law regards the capital of the company as something sacred and, generally no action resulting in the reduction of the company’s share capital is permissible. Therefore, the question arises whether a selective reduction of share capital is allowed under The Companies Act, 1956. The article answers the question by analysing the case of Elpro International Limited, In re and highlights the balance which is to be maintained between active and minority shareholders.