COMPANIES ACT, 1929

503
49. A limited company may by special resolution determine that
any portion of its share capital which has not been already called
up shall not be capable of being called up, except in the event and
for the purposes of the company being wound up, and thereupon
that portion of its share capital shall not be capable of being called
up except in the event and for the purposes aforesaid.

50.—(1) A company limited by shares or a company limited Dower of Some
by guarantee and having a share capital, if so authorised by its ry SY
articles, may alter the conditions of its memorandum as follows, its share capital.
that is to say, it may—

(@) increase its share capital by new shares of such amount
as it thinks expedient;
consolidate and divide all or any of its share capital “i.
shares of larger amount than its existing shares;
convert all or any of its paid-up shares into stock, and
reconvert that stock into paid-up shares of any denomina-
tion;
subdivide its shares, or any of them, into shares of smaller
amount than is fixed by the memorandum, so, however,
that in the subdivision the proportion between the amount
paid and the amount, if any, unpaid on each reduced share
shall be the same as it was in the case of the share from
which the reduced share is derived;
cancel shares which, at the date of the passing of the
resolution in that behalf, have not been taken or agreed
to be taken by any person, and diminish the amount of
its share capital by the amount of the shares so cancelled.

(2) The powers conferred by this section must be exercised
by the company in general meeting.

(3) A cancellation of shares in pursuance of this section shall
not be deemed to be a reduction of share capital within the meaning
of this Act.

51.—(1) If a company having a share capital has—

(a) consolidated and divided its share capital into shares of
larger amount than its existing shares; or
converted any shares into stock; or
re-converted stock into shares: or
subdivided its shares or any of them; or
redeemed any redeemable preference shares; or
cancelled any shares, otherwise than in connection with a
reduction of share capital under section fifty-five of this

Reserve liability
of limited
company.

e)

Act,

it shall within one month after so doing give notice thereof to the
registrar of companies specifying, as the case may be, the shares
consolidated, divided, converted, subdivided. redeemed or cancelled,
or the stock re-converted.

(2) If default is made in complying with this section, the
company and every officer of the company who is in default shall
be liable to a default fine.