the-ordinances-of-the-legislative-counci-1890v4 — Page 233

2056 ORDINANCE No. 30 OF 1886 .


Companies.


PART III.

Reduction of Capital .

Construction 4. The word capital as used in The Companies Ordinance, 1877,
of capital;
Power to shall include paid up capital ; and the power to reduce capital conferred
reduce
capital: by that Ordinance shall include a power to cancel any lost capital, or any
[40 and 41. V.
e. 26. s. 3. ] 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 tɔ
be preserved, notwithstanding any thing contained in The Companies
Ordinance, 1877.

Application 5. The provisions of The Companies Ordinance, 1877, as amended
of Ordinance
No. 1 of 1877 , by this Ordinance , shall apply to any company reducing its capital in
[Ibid. s. 4.]
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 required to
consent to the reduction ; and

( 2. ) It shall not be necessary before the presentation of 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 capital 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 required by law,