the-ordinances-of-the-legislative-counci-1890v2 — Page 286

876 [ 30 OF 1886. ] COMPANIES .


PART III.
Reduction of Capital.
Construction
of capital ; 4. The word capital as used in The Companies Ordinance,
Power to
recluce
1877, shall include paid up capital; and the power to reduce
capital : capital conferred by that ordinance shall include a power to
[40 and 41.V.
C. 26 , s. 3. ]
cancel any lost capital, or any capital unrepresented by available
>


assets or to pay off any capital which may be in excess of the
wants of the company ; and paid up capital may be reduced
either with or without extinguishing or reducing the liability
( if any ) remaining on the shares of the company and to the
extent to which such liability is not extinguished or reduced,
it shall be deemed to be preserved, notwithstanding any thing
contained in The Companies Ordinance, 1877.
Application
of Ordinance
5. The provisions of The Companies Ordinance, 1877, as
No. 1 of 1877, amended by this ordinance, shall apply to any company reducing
[ Ibid. s.4. ] its capital in pursuance of this ordinance and of The Companies
Ordinance, 1877, as amended by this ordinance: provided that
where the reduction of the capital of a company does not involve
either the diminution of any liability in respect of unpaid capital
or the payment to any shareholder of any paid up capital .
( 1.) The creditors of the company shall not unless the
Court otherwise direct, be entitled to object or 1
required to consent to the reduction ;; and
1
( 2. ) It shall not be necessary before the presentation of 1
the petition for confirming the reduction to add,
and the Court may , if it thinks it expedient so to
do, dispense altogether with the addition of the
words and reduced as mentioned in The Companies
Ordinance, 1877.
In any case that the Court thinks fit so to do, it may require
the company to publish in such manner as it thinks fit the
reasons for the reduction of its capital or such other information
in regard to the reduction of its c:1pital as the Court may think
expedient with a view to give proper information to the public
in relation to the reduction of its capital by a company , and, if
the Court thinks fit, the causes which led to such reduction.
The minute required to be registered in the case of reduction
of capital shall show , in addition to the other particulars re
quired by law, the amount ( if any ) at the date of the registra
tion of the minute proposed to be deemed to have been paid up
on each share.
Power to
6. Any company limited by shares may so far modify the
capital by the conditions contained in its memorandum of association, if au
cancelling of thorised so to do by its regulations as originally framed or as
unissued
shares . altered by special resolution , as to reduce its capital by cancell
[ Ibid. s. 5.] ing any shares which, at the date of the passing of such resolu