- (1.) This is an application under section 78 read with sections 100 to 103 of the Companies Act, 1956, hereinafter referred to as the said Act, for confirmation of the proposed reduction of the securities premium account of the petitioner, hereinafter referred to as the company.
(2.) Pursuant to a notice dated 8th December, 2004, an extraordinary general metting of the company was held on 13th December, 2004. A special resolution was adopted at the said extraordinary general meeting, to reduce the securities premium account of the company from Rs. 4649/- lacs to Rs. 2292.95 lacs subject inter alia to confirmation by this Court.
(3.) The special resolution for reduction of the securities premium account of the company was necessitated by reason of loss of the value of intangible assets of the company such as goodwill, trade mark and copy right. The company proposes to adjust the aforesaid loss against its securities premium account.;