240
for "Qat
for Board of Trade"
do.
Notice of
increase of share capital.
19 & 20 Geo.
5, c. 23,
s. 52.
Power of unlimited company to provide for
reserve share capital on re-registra tion.
19 & 20 Geo.
5, c. 23,
8. 53.
Power of company to pay interest cut of capital in certain
cases.
19 & 20 Geo.
5, c. 23, 3. 54.
22
It shall within one month after so doing give notice thereof to the registrar of companies specifying, as the case may be, the shares consolidated, divided, converted, subdivided, redeemed or cancelled, or the stock re-converted,
(2) If default is made in complying with this sec- tion, the company and every officer of the company who is in default shall be liable to a default fine.
54. (1) Where a company having a share capital, whether its shares have or have not been converted into stock, has increased its share capital beyond the registered capital, it shall within fifteen days after the passing of the resolution authorising the increase, give to the registrar of companies notice of the increase, and the registrar shall record the increase.
(2) The notice to be given as aforesaid shall include such particulars as may be prescribed with respect to the classes of shares affected and the conditions subject to which the new shares have been or are to be issued, and there shall be forwarded to the registrar of companies together with the notice a printed copy of the resolution authorising the increase.
(8) If default is made in complying with this section, the company and every officer of the company who is in default shall be liable to a default fine.
55. An unlimited company having a share capital may, by its resolution for registration as a limited company in pursuance of this Ordinance, do either or both of the following things, namely:-
(1) Increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, but subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up:
(2) Provided that a specified portion of its un- called share capital shall not be capable of being called up except in the event and for the purposes of the company being wound
up.
56. (1) Where any shares of a company are issued for the purpose of raising money to defray the expenses of the construction of any works or buildinge or the provision of any plant which cannot be made profitable for a lengthened period, the company may pay interest on so much of that share capital as is for the time being paid up for the period and subject to the conditions and restrictions in this section mentioned, and may charge the sum so paid by way of interest to capital as part of the cost of construction of the work or building, or the provision of plant:
Provided that
(a) No such payment shall be made unless it is authorised by the articles or by special resolution:
(b) No such payment, whether authorised by the articles or by special resolution, shall be made without the previous sanction of the court
(c) Before sanctioning any such payment the court may, at the expense of the company, appoint a person to inquire and report to thei as to the circumstances of the case, and may before making the appointment, require the company to give security for the payment of the costs of the inquiry:
23
(d) The payment shall be made only for such period as may be determined by the court, and that period shall in no case extend beyond the close of the half year next after the haif year during which the works or buildings have been actually completed or the plant provid- ed:
(e) The rate of interest shall in no case exceed four per cent, per annum or such other rate as may for the time being be prescribed by the court:
(f) The payment of the interest shall not operate as a reduction of the amount paid up on the shares in respect of which it is paid:
(g) The accounts of the company shall show the share capital on which, and the rate at which, interest has been paid out of capital during the period to which the accounts relate: L
(2) If default is made in complying with proviso (g) to subsection (1) of this section, the company and every officer of the company who is in default shall be liable to a fine not exceeding five hundred dollars
Reduction of Share Capital.
241
for Bourd of Trade"
for Order in bouncil"
paragraph (h) relating to Indian Railways
of share
omitted.
for "fifty pounds.
57.-(1) Subject to confirmation by the court, Special company limited by shares or a company limited by resolution guarantee and having a share capital may, if so for reduction authorised by its articles, by special resolution reduce capital. its share capital in any way, and in particular, with 19 & 20 Geo. out prejudice to the generality of the foregoing power, 5, c. 23,
may-
(a) extinguish or reduce the liability on any of its shares in respect of share capital not paid
up; or
(b) either with or without extinguishing or reduc. ing liability on any of its shares, cancel any paid-up share capital which is lost or represented by available assets; or
or
110-
or
(c) either with without extinguishing
reducing liability on any of its shares, pay off any paid-up share capital which is in excess of the wants of the company,
and may,
if and so far as is necessary, alter its memo- randum by reducing the amount of its share capital and of its shares accordingly.
(2) A special resolution under this section is in this Ordinance referred to as "a resolution for reducing share capital.**
s. 55.
58.--(1) Where a company has passed a resolution Application for reducing share capital, it may apply by petition to court for
confirming to the court for an order confirming the reduction. order,
abjections
(2) Where the proposed reduction of share capital by creditors, involves either diminution of liability in respect of and settle- unpaid share capital or the payment to any shareholder ment of list of objecting of any paid-up share capital, and in any other case creditors. if the court so directs, the following provisions shail 19 & 20 Geo. have effect, subject nevertheless to the next following 5, c. 23, subsection—
(a) Every creditor of the company who at the date fixed by the court is entitled to any debt or claim which, if that date were the com- mencement of the winding up of the company, would be admissible in proof against the company, shall be entitled to object to the reduction:
(b) The court shall settle a list of creditors so entitled to object, and for that purpose sbali ascertain, as far as possible without requiring an application from any creditor, the names
3. 56.
for "Act"