Prescribed majority of shareholders entitled to decide whether there should be a reduction in capital or not – HC

This aspect came up for consideration before this Court in Reckitt Benckiser (India) Ltd. [122 (2005) DLT 612], albeit, in context of reduction of share capital. In that case also, the scheme of the reduction was such that many shareholders like the applicants in the instant case were deprivation of their shareholdings on payment of certain price. The Court took note of the general rule that it was the prescribed majority of the shareholders which is entitled to decide whether there should be a reduction in capital or not. After taking note of various judgments, the Court has culled out the fo...