• How share capital may be altered

    • 567. 567. Alteration of share capital of limited company

      (1) A limited company having a share capital may not alter its share capital except in the following ways.
      (2) The company may—
      (a) increase its share capital by allotting new shares in accordance with this Part, or
      (b) reduce its share capital in accordance with Chapter 10.
      (3) The company may sub-divide or consolidate all or any of its share capital in accordance with section 568.
      (4) Nothing in this section affects—
      (a) the power of a company to purchase its own shares, or to redeem shares, in accordance with Part 17,
      (b) the power of a company to purchase its own shares in pursuance of an order of the Court under—
      (i) section 82 (application to Court to cancel resolution for re-registration as a private company),
      (ii) section 663(6) (powers of Court on objection to redemption or purchase of shares out of capital),
      (iii) section 697 (remedial order in case of breach of prohibition of public offers by private company), or
      (iv) Part 28 (protection of members against unfair prejudice),
      (c) the forfeiture of shares, or the acceptance of shares surrendered in lieu, in pursuance of the company's articles, for failure to pay any sum payable in respect of the shares,
      (d) the cancellation of shares under section 602 (duty to cancel shares held by or for a public company),
      (e) the power of a company—
      (i) to enter into a compromise or arrangement in accordance with Part 25 (arrangements and reconstructions), or
      (ii) to do anything required to comply with an order of the Court on an application under that Part.

      • 567B. Effect of redenomination

        (1) The redenomination of shares does not affect any rights or obligations of members under the company's constitution, or any restrictions affecting members under the company's constitution. In particular, it does not affect entitlement to dividends (including entitlement to dividends in a particular currency), voting rights or any liability in respect of amounts unpaid on shares.
        (2) For this purpose the company's constitution includes the terms on which any shares of the company are allotted or held.
        (3) Subject to subsection (1), references to the old nominal value of the shares in any agreement or statement, or in any deed, instrument or document, shall (unless the context otherwise requires) be read after the resolution takes effect as references to the new nominal value of the shares.