10.) Share capital
The share capital of a company is fixed at the time of its incorporation and must be stated in its Memorandum and Articles of Association. However, a company may by special resolution, as long as its articles permit, amend its share capital in any of the following ways:
- Make arrangements on the issues of shares between the shareholders;
- Accept from any member who assents the in part or in whole the amount remaining unpaid on shares held by him/her;
- Pay dividends in proportion to the amount paid for each share;
- Use undivided profits and distribute them amongst the shareholders as a dividend or bonus and then return it or any part to reduce the shareholders outstanding unpaid capital;
- Increase its capital by creating new shares of any amount;
- Consolidate or divide any or all of its capital into shares of a larger amount;
- Convert all or any of its paid-up shares into stock;
- Retain the amount to be distributed and invest until time as a future call might be made from which this retained amount could then be paid against. This retained amount will be documented in the annual list of members as required by the company act;
- Subdivide its shares into smaller amounts than is set in the memorandum as long as the proportion between the amount paid and the amount unpaid shall remain the same;
- Cancel shares which have not been taken up and reducing its capital by the amount so cancelled.
These changes as described would provoke the requirement to provide notice to the Registrar of the companies specifying the case, shares, and action taken.
Id. §§ 40-44.