Secretarial practice

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter V. Capital and shares

Collection:: Economics Books

CHAPTER V CAPITAL AND SHARES As has been seen in Chapter III, a clause (commonly the fifth) in the memorandum of association of a company limited by shares, must state ‘the amount of share capital with which the company proposes to be registered, and the division thereof into shares of a fixed amount’ [s. 2 (4)]. The amount of capital with which a company is registered, or to which that amount is subsequently increased, is generally called the nominal capital, or the authorised capital, of the company. The phrases ‘issued capital’ and ‘paid up capital’ must be distinguished, since neither of these is necessarily identical in amount with the nominal capital, or with the other. Thus a company may have a nominal capital of £100,000, divided into 100,000 shares of £1 each. If 60,000 shares have been issued and 15s. per share has been paid on them, the issued capital is £60.000 and the paid up capital £45,000. The capital clause, being one of the conditions of the memorandum, can only be altered in the mode and to the extent for which express provision is made in the Act (s. 4). The alterations so provided for are increase of capital, consolidation of shares, conversion into stock and recon- version into shares, subdivision of shares, cancellation of shares (s. 50), and reduction of capital (s. 55). Such altera- tions can now only be effected by the company in general meeting whereas under the 1908 Act all but sub-division of shares and reduction of capital could be effected by the directors if the articles or a resolution of the company authorised them so to do. The capital can also be reorganised by a scheme of arrangement under s. 153. As regards increase of capital, a company may, if authorised by its articles, increase its capital by the issue of new shares of such amount as it thinks expedient. Such increase need not be authorised by the memorandum nor is a power therein effective [re Dexine Co. (1903), W.N. 82], but it must be authorised by the articles, and if the articles as originally framed do not sanction such increase they must be altered by special resolution before it can be effected. The power [ncrease of Capital,

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