Mode of alteration, Business Law and Ethics

Mode of Alteration:

 The alteration of capital may be made by -

1) Increasing the company's share capital by new shares of such amount as the resolution prescribes; or

2) Consolidating and dividing all or any of the company's share capital into shares of larger amount than the existing shares; or

3) Converting all or any of the company's paid-up shares into stock, or reconverting the stock into paid-up shares of any denomination; or

4) Subdividing all or any of the shares into shares of smaller amount than is fixed by the memorandum; or

5) Canceling shares which have not been taken or agreed to be taken by any person, and diminish the amount of the capital. This mode of alteration is also known as diminution of capital. Subsection (3) provides that it shall not be deemed to be a reduction of share capital within the meaning of the Act.

3.2 The registrar must be notified of an alteration of capital within thirty days after the passing of the resolution authorizing the alteration. In the event of a failure to do so, the company and every officer of the company who is in default shall be liable to a default fine.

Posted Date: 1/12/2013 4:26:32 AM | Location : United States







Related Discussions:- Mode of alteration, Assignment Help, Ask Question on Mode of alteration, Get Answer, Expert's Help, Mode of alteration Discussions

Write discussion on Mode of alteration
Your posts are moderated
Related Questions
Mary has just graduated from LIM College and is in an interview with ABC Design Firm.  ABC employees several talented designers that work with ABC retail clients to design lines of

Unique Vespa Couriers Pty Ltd ('UVC') is a courier company operating in the Melbourne metropolitan area.  Where most courier companies used bicycle couriers, UVC used vespas.  They

why upholding ethics is important in public procurement

Define the meaning of Lobbyists Lobbyists place a premium on information. While framing their arguments; they often turn to research and analysis that supports the case they ar

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who necessarily takes the initiative in considering the contract

Forms of action: A minority of shareholders or an individual shareholder suing under one of the above exceptions may institute one of the following actions i) A personal ac

Ethics The influence of personal ethics on workplace behaviour. (a) Explain in relation to the organisation you researched in Section A of this report why managers should use ethi

Promotion: A company comes into existence from the moment of its registration by the registrar of companies. However, the  registration is preceded by what is called "promotio

Rights of inspection: The registers and documents are subject to the following rights of inspection: (a)     The company's members are entitled to inspect them, free of cha

Representative action: Where individual shareholders have suffered personal loss in addition to the injury to the company one shareholder may bring a representative action on