Court : Orissa
Decided on : Mar-30-1998
Reported in : AIR1998Ori153; 95CompCas429(Orissa)
..... shall be dealt with infra. the said resolution reads as follows :'resolved, by way of special resolution that pursuant to sections 78 and 100 and other applicable provisions of the companies act, 1956 and subject to confirmation of the high court at orissa and any other approval/s as may be required, the premium for 18,00,000 ordinary shares of rs ..... . 10/- each which have been allotted on 1st january, 1997 and 21st july, 1997 upon conversion of zero coupon convertible debentures (zccds) issued on rights basis be reduced from rs. i30/- per share to rs. 95/- per share by cancellation of liability for payment of rs. 35/-per share payable on ..... or proper.' 2. reasons seeking for reduction are stated to be as follows:(a) by a letter of offer dated september 18, 1996 the company issued, on rights basis to its shareholders, 18,00,000 zero coupon convertible debentures of rs. i40/- each (hereinafter referred to as 'zccds') along with detachable warrants to part finance the expansion and/or modernisation projects undertaken ..... there is strong cause. thus in re meur's brewery co. ltd.,(l919) l ch 28 (1918-19) all er rec 1192, debenture-holders unsuccessfully objected that the proposed reduction would be prejudicial to their security by enabling the company to pay dividends out of profits instead of such profits being applied in making good the lost capital. no evidence was adduced .....Tag this Judgment!