1964_COMPANIES_ORDINANCE — Page 318

60

CAP. 32]

Companies

[1984 Ed.

Eighth Schedule

(80 of 1974 ) (*1.30.75]

Tenth Schedule

Power to issue redeemable preference shures.

1948 c. 38, «. 58

(4) For the purposes of subsection (3), the expenses of the issue of any shares shall be deemed to include such portion of the ad valorem fee paid under the Eighth Schedule by the company upon its registration or upon any increase thereafter in its nominal share capital as is attributable to the nominal amount of the shares issued.

(5) Where a company has before the commencement* of the Companies (Amendment) (No. 4) Ordinance 1974 issued any shares at a premium, this section shall apply as if the shares had been issued after the commencement of that Ordinance:

Provided that any part of the premiums which has been so applied that it does not at the commencement of that Ordinance form an identifiable part of the company's reserves within the meaning of the Tenth Schedule shall be disregarded in determining the sum to be included in the share premium account.

Added, 80 of 1974, s. 6)

49. (1) Subject to the provisions of this section, a company limited by shares may, if so authorized by its articles, issue prefer- ence shares which are, or at the option of the company are to be liable, to be redeemed:

Provided that---

(a) no such shares shall be redeemed except out of profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption;

(b) no such shares shall be redeemed unless they are fully paid;

(c) the premium, if any, payable on redemption, must have been provided for out of the profits of the company or out of the company's share premium account before the shares are redeemed;

(d) where any such shares are redeemed otherwise than out of the proceeds of a fresh issue, there shall out of profits which would otherwise have been available for dividend be transferred to a reserve fund, to be called "the capital redemption reserve fund”, a sum equal to the nominal amount of the shares redeemed, and the provisions of this Ordinance relating to the reduction of the share capital of a company shall, except as provided in this section, apply as if the capital redemption reserve fund were paid-up share capital of the company.

(2) Subject to the provisions of this section, the redemption of preference shares thereunder may be effected on such terms and in such manner as may be provided by the articles of the company.

(3) The redemption of preference shares under this section by a company shall not be taken as reducing the amount of the company's authorized share capital.