COMPANIES ACT, 1929 
595 
The payment shall be made only for such period as may 
be determined by the Board of Trade, and that period 
shall in no case extend beyond the close of the half year 
next after the half year during which the works or 
buildings have been actually completed or the plant 
provided: 
The rate of interest shall in no case exceed four per cent. 
per annum or such other rate as may for the time being 
pe prescribed by Order in Council: 
The payment of the interest shall not operate as a 
reduction of the amount paid up on the shares in respect 
of which it is paid: 
The accounts of the company shall show the share 
capital on which, and the rate at which, interest has been 
paid out of capital during the period to which the accounts 
relate: 
Nothing in this section shall affect any company to which 57 & 58 Vict 
the Indian Railways Act, 1894, as amended by any cia. ’ 
subsequent enactment, applies. 
(2) If default is made in complying with proviso (g) to sub- 
section (1) of this section, the company and every officer of the 
company who is in default shall be liable to a fine not exceeding 
fifty pounds. 
Reduction of Share Capital. 
55.—(1) Subject to confirmation by the court, a company limited 
by shares or a company limited by guarantee and having a share 
capital may, if so authorised by its articles, by special resolution 
reduce its share capital in any way, and in particular, without 
prejudice to the generality of the foregoing power, may— 
{a) extinguish or reduce the liability on any of its shares in 
respect of share capital not paid up; or 
either with or without extinguishing or reducing liability 
on any of its shares, cancel any paid-up share capital 
which is lost or unrepresented by available assets; or 
either with or without extinguishing or reducing liability 
on any of its shares, pay off any paid-up share capital 
which is in excess of the wants of the company, 
and may, if and so far as is necessary, alter its memorandum by 
reducing the amount of its share capital and of its shares accordingly. 
(2) A special resolution under this section is in this Act refer 
to as ‘‘a resolution for reducing share capital.” 
56.—(1) Where a company has passed a resolution for reducing 
share capital, it may apply by petition to the court for an order 
confirming the reduction. 
(2) Where the proposed reduction of share capital involves 
either diminution of liability in respect of unpaid share capital or 
the payment to any shareholder of any paid-up share capital, and 
in any other case if the court so directs, the following provisions shall 
have effect, subject nevertheless to the next following sub-section ;(— 
special resolu- 
ion for reduc- 
tion of share 
capital. 
Application to 
court for con- 
firming order, 
objections by 
creditors, and 
settlement of 
list of objecting 
creditors.