Corporate Law

*Corporate Law - Reduction of Share Capital* - "The Indian Accounting Standards (Ind AS) 113 provides for fair value determination as a market based measurement and *not an entity specific measurement*, quite contrary to the statutory scheme found in the United States as described by Professor Moll. The broad principles distilled were that (i) reduction of share capital is a strictly domestic concern depending on the decision of the majority, (ii) if reduction of share capital is approved by a special resolution, the majority also has the right to decide how it should be carried out, (iii) reduction of share capital can be brought about by extinguishing some of the shares while retaining others even in the same class or making a proportionate reduction for all or even for some, while for others it is totally extinguished. *The reduction thus can be in any manner* and even if it is selective it is permissible." - *Pannalal Bhansali v. Bharti Telecom Ltd [2026] GCtR 199 (SC)*