Mode of alteration, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Mode of alteration

Firm name - partnership law, Firm Name - Partnership Law Lawfully ...

Firm Name - Partnership Law Lawfully the firm name is simply a convenient way about alluding to the existing partners.  However an authority to lend to a firm does not aut

Statutory corporation and chartered corporation, Statutory Corporation a...

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

What is the predevelopment phase of policy process, What is the Predevelopm...

What is the Predevelopment Phase of policy process a) Get authorization and support Who has the authority to create this type of policy? Who has the authority to approve

Legal personality and its likely consequences, Jack has operated a house bu...

Jack has operated a house building business as a sole trader for a number of years. Now, his accountant has recommended that he should consider registering as a company in order to

Explain about the policy co-ordination of each countries, Explain in detail...

Explain in detail about the policy co-ordination of each country With no policy coordination each country will attempt to maximise its own welfare, taking the other country's m

Self-confidence-entrepreneurship development, Self-Confidence: Entrepreneu...

Self-Confidence: Entrepreneurs are self-confident and tackle problems immediately with confidence and are persistent in the pursuit of their objectives. Most are at their best in

What are the main sources of european law, What are the main sources of Eur...

What are the main sources of European Law? There are three main sources of EU (European) law: a. Primary legislation: It is the Treaties of Rome and Paris that initial

Graphically illustrate a drp system, Question 1: Describe the types of ...

Question 1: Describe the types of pallets that exist, and suggest the one that is more suitable to an organization that has a high variety of low-value items, which high stock

Explain international law on terrorism, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd