Altering of share capital
Section 62 of the Act permits a company to alter its share capital if it is authorised by its articles (AA) to alter the conditions of its memorandum (MA). The company may alter its memorandum at a general meeting.
Under Section 62, a company can do the following:
1. increase its share capital by the creation of new shares of such amount as it thinks expedient;
2. consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
3. convert all or any of its paid-up shares into stock and re-convert that stock into paid-up shares of any denomination;
4. subdivide its shares or any of them into shares of smaller amount than is fixed by the memorandum, so however that in the subdivision 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; or
5. 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.
| Activity 3.3
|Question to activity 3.3||Suggested answers to activity 3.3|