2007 (11) TMI 418 - HC - Companies Law

Summary

Issues:
Confirmation under section 78 of Companies Act for reduction of securities premium account.

Analysis:
The Company filed a Company Petition seeking confirmation under section 78 of the Companies Act for the reduction of the securities premium account. The company, incorporated in 1976, had two cement units and its registered office in Morak. A special resolution was passed at the Annual General Meeting on 14-7-2007, where shareholders approved the reduction on securities premium account to meet deferred tax liability. The Court ordered the publication of a Notice in newspapers, and after no objections were raised, the matter was scheduled for further hearing.

The Court, on 30-11-2007, noted the absence of any appearance or objections and proceeded to order the following:
(a) Confirmation of the reduction of share capital/securities premium account as per the special resolution passed at the General Meeting.
(b) Approval of the minutes proposed by the Company for utilizing the credit balance for meeting deferred tax liability.
(c) Dispensation of the additional words "and reduced" after the name of the Company as per the Companies Act.
(d) Dispensation of the publication of reasons for reduction and other information.
(e) Direction for the Company to deliver a certified copy of the order to the Registrar of Companies within six weeks.
(f) Requirement for the publication of the order and minutes in specified newspapers within two weeks of registration by the Registrar of Companies.

Conclusively, the Court disposed of the Company petition in accordance with the directives mentioned above and instructed the Registrar of Companies to ensure compliance with the order.