the-ordinances-of-the-legislative-counci-1890v2 — Page 287

COMPANIES. [ 30 OF 1886. ] 877

tion , 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 Accumulated
profits, which with the consent of the shareholders may be dis- returned
profitsema toay be
tributed among the sharehol«lers in the form of aa dividend or sharehol ders
in reduction
bonus, it shall be lawful for the company , by special resolution, of paid--up
to return the same, or any part thereof, to the shareholders in capital,
( 43 V. c. 19,
reduction of the paid up capital of the company, the unpaid s$. 3.]]
capital being thereby increased by a similar amount. The

powers vested in the directors of making calls upon the share
holders 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 toNotakeresolution
effect
until a memorandum , showing the particulars required by law till particu
in the case of a reduction of capital by order of the Court , shall register
lars havebeen
ed.
have been produced to and registered by the registrar of com- (13 V.v.c. 19,
panies. 8. 4. ]

9. Upon any reduction of paid up capital made in pursuance shareholder
Power to any
of this ordinance, it shall be lawful for any shareholder, or for within one
any one or more of several joint shareholders, within one month month after
after the passing of the special resolution for such reduction, to resolution to
require the company to retain, and the company shall retain require com .
accordingly , the whole of the moneys actually paid upon the monkeys pati na
shares held by such person, either alone or jointly with any upon shares
other person or persons, and which, in consequence of such person ,
reduction, would otherwise be returned to him or them , and .(435. ]y. c. 19,
thereupon 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, and the
company shall invest and keep invested the moneys so retained
in such securities, as may be authorised by the Supreme Court,
and upon the money so invested , or upon so much thereof as
from time to time exceeds, the amount of calls subsequently
made upon the shares in respect of which such moneys shall
have been retained , the company shall pay such interest as shall
be received by them from time to time on such securities , and
the amount so retained and invested shall be held to represent
the future calls which may be made to replace the capital so