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time to time exceeds the amount of calls subsequently made on the shares in respect of which it has been retained, the company shall pay the interest received from time to time on the securities.
(4) The amount retained and invested shall be held to represent the future calls which may be made to replace the share capital so reduced on those shares, whether the amount obtained on sale of the whole or such proportion thereof as represents the amount of any call when made produces more or less than the amount of the call.
(5) On a reduction of paid-up share capital in pursuance of this section, the powers vested in the directors of making calls on shareholders in respect of the amount unpaid on their shares shall extend to the amount of the unpaid share capital as angmented by the reduction.
(6) After any reduction of share capital under this section the company shall specify in the annual fist of members required by this Ordinance the amounts retained at the request of any of the shareholders in pursuance of this section, and shall specify in the statements of account laid before any general meeting of the company the amount of undivided profits returned in reduction of paid-up share capital under this section.
42.-(1) A company limited by shares, if so authorised Power of by its articles, may alter the conditions of its memorandum company as follows (that is to say), it may-
(4) increase its share capital by the issue of new shares of such amount as it thinks expedient: (4) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares ;
(e) convert all or any of its paid-up shares into stock, and reconvert that stock into paid-np shares of any denomination :
(d) subdivide its shares, or any of them, into shares of smaller amount than is fixed by the memor- andum, so, however, that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived ; (e) cancel shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled.
(2) The powers conferred by this section with respect to subdivision of shares must be exercised by special resolution.
(3) Where any alteration has been made under this section in the memorandum of a company, every copy of the memorandum issued after the date of the alteration shall be in accordance with the alteration.
If a company makes default in complying with this provision it shall be liable to a fiue not exceeding ten dollars for each copy in respect of which default is made; and every director and manager of the company who knowingly and wilfully authorises or permits the default shall be liable to the like penalty.
(4) A cancellation of shares in pursuance of this section shall not be deemed to be a reduction of share capital with- in the meaning of this Ordinance,
limited by shares to alter its
Edw. 7 c. share capital.
69 s. 41.
43. Where a company having a share capital has con- Notice to solidated and divided its share capital into shares of larger registrar of
consolidation amount than its existing shares, or converted any of its of share shares into stock, or reconverted stock into shares, it shall capital, con- give notice to the registrar of companies of the consolida- version of tion, division, conversion, or reconversion specifying the shares into
stock, &c. shares consolidated, divided, or converted, or the stock re-
74, s. 42. converted.