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 
30