Red Cap Ltd. wants to reduce its equity share capital to extinguish the holding of only non-promoter shareholders on payment of the value of their shares. Reduction was approved by the requisite majority of equity shareh

Such reduction in equity capital to extinguish the holding of only non-promoter shareholders will be sanctioned. In the matter of Sandvik Asia Ltd. v. Bharat Kumar Padamsi (2009) 151 Com Cases 251 (2010) 2 Com L J 255 (Bom) , where the object of reduction was to extinguish the holding of non-promoter shareholders on payment of fair value for their shares and reduction was approved by a majority of equity shareholders including majority of non-promoter shareholders, the reduction was sanctioned.