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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.
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