ORDINANCE No. 30 OF 1886. 2051
Companies.
the amount ( if any ) at the date of the registration of the minute proposed
to be deemed to have been paid up on each share.
6. Any company limited by shares may so far modify the conditions Power to
reduce
contained in its memorandum of association , if authorised so to do by its capital by the
cancelling of
regulations as originally framed or as altered by special resolution, as to unissued
shares.
reduce its capital by cancelling any shares which , at the date of the passing [Ibid. s. 5. ]
of such resolution , have not been taken or agreed to be taken by any
person ; and the provisions of The Companies Ordinance, 1877 shall not
apply to any reduction of capital made in pursuance of this section .
PART IV .
Accumulated profits .
7. When any company has accumulated a sum of undivided profits , Accumulated
profits may be
which with the consent of the shareholders may be distributed among returned to
shareholders
the shareholders in the form of a dividend or bonus, it shall be lawful for in reduction
of paid-up
the company, by special resolution, to return the same, or any part capital.
[43 V. c. 19.
thereof, to the shareholders in reduction of the paid up capital of the s. 3. ]
company, the unpaid capital being thereby increased by a similar amount.
The powers vested in the directors of making calls upon the shareholders
in respect of moneys unpaid upon their shares shall extend to the amount
of the unpaid capital as augmented by such reduction.
8. No such special resolution as aforesaid shall take effect until a No resolution
to take effect
memorandum , showing the particulars required by law in the case of a till particu- .
lars have been
reduction of capital by order of the Court, shall have been produced to registered.
[43 V. c. 19,
and registered by the registrar of companies. s. 4. ]
9. Upon any reduction of paid up capital made in pursuance of this Power to any
shareholder
Ordinance, it shall be lawful for any shareholder, or for any one or more within one
month after
of several joint shareholders , within one month after the passing of the passing of
resolution to
special resolution for such reduction , to require the company to retain , require com
pany to retain
and the company shall retain accordingly, the whole of the moneys actu moneys paid
upon shares
ally paid upon the shares held by such person, either alone or jointly held bysuch
person.
with any other person or persons, and which, in consequence of such [43 V. c. 19,
reduction, would otherwise be returned to him or them, and thereupon 8.5. ]
the shares in respect of which the said moneys shall be so retained shall ,
in regard to the payment of dividends thereon , be deemed to be paid up
to the same extent only as the shares on which payment as aforesaid has
been accepted by the shareholders in reduction of their paid up capital ,