( Author )
30 January 2009
a co. X Pvt. Ltd. is having its 3 undertakings one of petroleum, second for telecommunication and third fir It services. now the co. wants to segregate its It & petroleum undertakings by way of demerger to B and C pvt ltd respectively.
Consequently it will result a downfall in the book value of per share of X pvt ltd. Should it be deemed as Capital reduction??
if yes, then are there any legal consequences besides that of capital reduction.??