94. Power of limited
company to alter its share capital.—(1) A limited
company having a share capital, may, if so authorised by its
articles, after the conditions of its memorandum as follows,
that is to say, it may—
(a) increase its share capital by such amount as it thinks
expedient by issuing new shares;
(b) consolidate and divide all or any of its share capital
into shares of larger amount than its existing shares;
(c) convert all or any of its fully paid up shares into stock,
and reconvert that stock into fully paid up shares of any
denomination;
(d) sub-divide its shares, or any of them, into shares of
smaller amount than is fixed by the memorandum, so however,
that in the sub-division the proportion between the amount
paid and the amount, if any, unpaid on each reduced share
shall be the same as it was in the case of the share from
which the reduced share is derived;
(e) cancel shares which, at the date of the passing of the
resolution in that behalf, have not been taken or agreed to
be taken by any person, and diminish the amount of its share
capital by the amount of the shares so cancelled.
(2) The powers conferred by this section shall be exercised
by the company in general meeting and shall not require to
be confined by the Court.
(3) A cancellation of shares in pursuance of this section
shall not be deemed to be a reduction of share capital within
the meaning of this Act.
|
