Singapore legislation
Clause 62
Clause 62
Power of company to alter its share capital
(1)
A company if so authorized by its articles may in general meeting alter the conditions of its memorandum in any one or more of the following ways: —
increase its share capital by the creation of new shares of such amount as it thinks expedient;
consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
convert all or any of its paid up shares into stock and re-convert that stock into paid up shares of any denomination;
subdivide its shares or any of them into shares of smaller amount than is fixed by the memorandum, so however that in the subdivision the proportion between the amount paid and the amount (if any) unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived;
cancel shares which at the date of the passing of the resolution in that behalf have not been taken or agreed to be taken by any person or which have been forfeited and diminish the amount of its share capital by the amount of the shares so cancelled.[U.K.ss. 61, 64.][Aust, s. 62.]
(2)
A cancellation of shares under this section shall not be deemed to be a reduction of share capital within the meaning of this Act.
(3)
An unlimited company having a share capital may by any resolution passed for the purposes of subsection (1) of section 25 —
increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, but subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up; and
in addition or alternatively, provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the company being wound up.
(4)
Where a company has increased its share capital beyond the registered capital, it shall within one month after the passing of the resolution authorizing the increase lodge with the Registrar notice of the increase.
(5)
If any company fails to comply with the provisions of subsection (4) of this section the company and every officer of the company who is in default shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding two hundred and fifty dollars and also to a default penalty.