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In forceAmended2020 Revised Edition
Contents

Part 4 · Shares, Debentures and Charges

78A. Preliminary

Amended

Last amended by an amending law of 2014.

(1)

A company may reduce its share capital under the provisions of this Division in any way and, in particular, do all or any of the following:

(a)

extinguish or reduce the liability on any of its shares in respect of share capital not paid up;

(b)

cancel any paid‑up share capital which is lost or unrepresented by available assets;

(c)

return to shareholders any paid‑up share capital which is more than it needs.

(2)

A company may not reduce its share capital in any way except by a procedure provided for it by the provisions of this Division.

(3)

A company’s constitution may exclude or restrict any power to reduce share capital conferred on the company by this Division.

(4)

In this Division —

“reduction information”, in relation to a proposed reduction of share capital by a special resolution of a company, means the following information:

(a)

the amount of the company’s share capital that is thereby reduced;

(b)

the number of shares that are thereby cancelled;

“resolution date”, in relation to a resolution, means the date when the resolution is passed.

(5)

This Division does not apply to an unlimited company, and does not preclude such a company from reducing in any way its share capital.

(5A)

This Division does not apply to any redemption of preference shares issued by a company under section 70(1) which results in a reduction in the company’s share capital.

(6)

This Division does not apply to the purchase or acquisition or proposed purchase or acquisition by a company of its own shares in accordance with sections 76B to 76G.

Report

Part 5

Management and Administration

Part 6

Financial Statements and Audit

Part 7

Arrangements, Reconstructions and Amalgamations

Part 8

Part 8A

Part 9

Investigations

Part 10

Dissolution

Part 10A

Transfer of Registration

Part 11

Various Types of Companies, Etc.

Part 11A

Register of Controllers, Nominee Directors and Nominee Shareholders of Companies

Part 12

General

Schedules