Shares.

SECRETARIAL PRACTICE
On the petition being presented a summons is issued for
the directions of the Court as to the procedure preliminary
to the hearing of the petition. This procedure is governed
by order L111 B. Rules 10 and 1T of the Rules of the Supreme
Court. (See Appendix G.) The detailed consideration of
this order is beyond the scope of this book; but it may be
mentioned that if creditors are affected, the Court will require
a list of the company’s creditors made out at a date fixed
by the Court, and this list will have to be verified by an
affidavit which is usually sworn by the secretary. As the
debts due to the creditors appearing in the list will have to
be paid off or provided for before the reduction is confirmed
unless such creditors consent to the reduction [see ss. 56 (2),
57], it is advisable to present the petition on a date at which
the company’s indebtedness is at the minimum.

“On confirmation by the Court of the reduction, a copy of
the order of the Court, and an approved minute showing the
amount of the reduced capital with its division into shares,
must be produced to the Registrar for registration and the
reduction only takes effect from registration (s. 58). Copies
of the memorandum issued after the registration must
embody the minute [ss. 24, 58 (6)], and notice of the registra-

tion must be published as the Court directs [ss. 58 (3)].

Under the law in force prior to the 1st November, 1929,
the company was bound to add the words ‘and reduced’
to its name either from the date of the presentation of the
petition or, if creditors were affected by the reduction, from
the date of confirmation of the resolution for reduction.

Under the existing law, the company will not have to add
the words ‘and reduced’ to its name unless directed by the
Court so to do under s. 57 which provides that where the
Court makes an order confirming the reduction it may,
if for any special reason it thinks proper so to do, direct
the company for such period as the Court thinks fit to add
to its name the words ‘and reduced’, and may also require
the company to publish the reasons for the reduction or such
other information as the Court may think expedient with a
view to giving proper information to the public and, if the
Court thinks fit, the causes which led to the reduction [s.
57 (2)]. It is impossible to predict in what cases the Court

will think it necessary to direct the addition of the words

‘and reduced’ to the name of the company; but the use of

the words ‘special reason’ in the section indicate that as a

rule no-such direction will be given.

As already stated the memorandum must state the amount

of share capital and the division thereof into shares of a

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