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

Types of subsidiary legislation, TYPES OF SUBSIDIARY LEGISLATION: Howe...

TYPES OF SUBSIDIARY LEGISLATION: However the definition of subsidiary legislation in s.2 of the Interpretation and General Provisions Act reflects the great variety of nomencl

Law Paper, I am an international Law student. am taking International Finan...

I am an international Law student. am taking International Financial Institutions I wrote a paper about the Europe Crisis I would like to find a lawyer or a tutor that can review a

President''s assent, PRESIDENT'S ASSENT: Under section 46(2) of the ...

PRESIDENT'S ASSENT: Under section 46(2) of the Constitution a Bill passed through the National Assembly must be presented to the President for his assent. However the Presid

Set of circumstances of policy maker, Set of circumstances of policy maker ...

Set of circumstances of policy maker The distinction leads to think what to say then, to a policy, which is feasible in only one set of circumstances. Then the expectations on

Strong and weakness of acts of parliament, Strong and Weakness of Acts of P...

Strong and Weakness of Acts of Parliament: There an Act of Parliament may be said to possess the giving advantages: as; (i) Democratic in nature Now here it is democrati

Liability of maker of a promissory, Liability of Maker of a Promissory ...

Liability of Maker of a Promissory Conversely S.89 provides such with the maker of a promissory notice through making it: like (a) Engages such he will pay it according to

Authority of precedent - statement of salmond, Authority of Precedent - Sta...

Authority of Precedent - Statement of Salmond There writing on the authority of the precedent Salmond has stated as follows like; "The importance of judicial precedent has

Bailment – negotiable instrument, Bailment – Negotiable Instrument Wheth...

Bailment – Negotiable Instrument Whether Sir William Jones has specified the subsequent definition of bailment: like "A delivery of goods on trust on a contract, such express

Analysis of ethics issues case, Purpose: To enable course registrants to a...

Purpose: To enable course registrants to apply their knowledge of ethical principles, skills in ethical analysis, and use of introspection to analyze an actual case that contains

Exceptions for nemo dat quod non habet, Exceptions for Nemo Dat Quod Non Ha...

Exceptions for Nemo Dat Quod Non Habet However the "nemo dat" rule is subject for the following exceptions such are provided by the Act: like; (a) Estoppel With S.23

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