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Companies Act, 1973 (Act No. 61 of 1973)

Chapter V: Share capital, Acquisition by Companies of own Shares, Shares, Allotment and Issue of Shares, Members and Register of Members, Debentures, Transfers, and Restrictions on Offering Shares for Sale

Share capital

78. Effect of conversion of par value share capital into no par value share capital and vice versa

 

 

1) Where a company converts all its ordinary or preference shares having a par value, or both such ordinary and such preference shares, into shares without par value, there shall be transferred to the stated capital account of the company-
a) the whole of the ordinary or preference share capital, as the case may be; and
b) the whole of the share premium account or that part thereof contributed to it by the shares so converted.

 

2) Where a company converts all its ordinary or preference shares of no par value or both such ordinary and such preference shares into shares having a par value, there shall be transferred to the share capital account of the company the whole of the stated capital account or that part thereof contributed to it by the shares so converted.

 

3) Fractions, fractional surpluses or amounts arising in respect of the nominal share capital or the stated capital may be rounded off but material reductions shall be placed to non-distributable reserves.

 


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