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

Effects or consequences of illegality, Effects or Consequences of Illegalit...

Effects or Consequences of Illegality Misdemeanour Or Illegality renders a contract unenforceable.  However the contract creates no rights and imposes no obligations at the pa

Important step in the policy making process, QUESTION 1 (a) According t...

QUESTION 1 (a) According to Thomas Dye "Public Policy is whatever governments choose to do or not to do". How far do you agree? (b) Explain clearly how the first important s

Advantages of stare decisis - practicality, Advantages of Stare Decisis - ...

Advantages of Stare Decisis - Practicality In fact the case law method has enabled judges to adopt a practical approach for legal problems since those problems have arisen

Explain the international law on kashmir dispute, Normal 0 fals...

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

Companys objects, Companys objects: A company's objects are stated pur...

Companys objects: A company's objects are stated pursuant to the provisions of an Act of Parliament. It must therefore be deduced, for example, that a company whose object has

Regulations regarding electricity, REGULATIONS REGARDING ELECTRICITY : You...

REGULATIONS REGARDING ELECTRICITY : You are aware that electricity is the most common and convenient source of power. You know that carelessness in handling or maintenance of elec

What forces the policy maker to obey the law, What forces the policy maker ...

What forces the policy maker to obey the law When law directs a policy maker to carryout policy, what forces the policy maker to obey the law? When there is no restriction from

Describe urys stages-strategy, Question 1: i) What are the main charac...

Question 1: i) What are the main characteristics of good faith bargaining? ii) What are the main criteria used in the US labour relations system to test good faith bargain

When is an employer not vicariously liable, When is an employer not vicario...

When is an employer not vicariously liable? An employer is not vicariously liable when: a. Worker is doing something in working hours as of a personal nature. b. She or h

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