However anything included in this act, where the government has by an order made under sub-section (4) of section 81, managed that any loan or debenture or any part thereof shall be changed into shares in a company. The provisions included in the memorandum of such company shall improving the official share capital of the company.
Where in performance of a choice assigned to debentures loans or issued obtained by the company, any public financial institution suggests to convert such loans or debentures into shares in the company.
Where the memorandum of a company becomes changes, whether by reason of an order made by the government.
Special resolution for reduction of share capital
Subject to verification by the board, a company limited by shares or a company limited by guarantee and containing a share capital, may, if so approved by its articles, by special declaration.
Reduce the liability or extinguish on any of its shares in favour of share capital not paid up.
Either with or without reducing liability or extinguishing on any of its shares or is unrepresented by available assets.
If any creditor is allowed in favour of any debt or claim to object to the allowance of share capital is by reason of his innocence of the following for reduction or of their nature and effect with regard to his claim or debt, not entered on the list of creditors.
All company members at the date of company registration of the order for minute and reduction, shall be responsible to subscribe. If the company has started to wound up on the day instantly before the said date.
If the company is harm, the board on the application of proof of his inexperience and such creditor as same.
Registration of order and minute of reduction
- On making to him of an order of the board validating the concession of the company share capital.
- On the registration of the minute and order and the declaration for reducing share capital as verified by the order.
- The registration and the notice shall be issued in such process as the board may direct.
- The registrar will issue the company registration of the minute and order and his certificate shall be final evidence of all the needs of this act.
Penalty for concealing Name of Creditor, Etc
If any company officer:
- Intentionally conceals any creditor name is entitled to object to the reduction.
- Deliberately affect the amount or nature of the claim or debt of any creditor.
- Privy or its abets to any such misrepresentation or concealment as same
Alteration of rights of holders of special classes of share capital
Where the company share capital is arranged into various classes of shares, the rights connected to the shares of any class may be changed with the approval in writing of the holders of not less than three-fourths of the provided shares of which class or with the approval of a special declaration passed at a different meeting of the holders of the provided shares.
If the stipulation with favour to such difference is included in the articles of the company or memorandum for their registration.
In the need of any such condition in the articles or memorandum, if such difference is not banned by the period of issue of the shares of that class.
Rights of Dissentient shareholders
If in completion of any condition such as mentioned to in section 106, the rights assigned to any such class of shares are at any time changed, the holders of not less in the total than 10% of the provided shares of that class, being persons who did not vote in favour or confirmation of the declaration for the changes may assign to the board to have the difference is cancelled and where any such application is made, the differences are not perform unless and until it is validated by the board.
An application under this clause shall be made within 21 days on which the approval was given or the decision was passed and may be made on behalf of the shareholders allowed to create the application by one or more of their numbers. The company registration and all other rights are not used by the shareholders.
On any such application, the board after getting the applicant and any other persons who register the board to be appear and heard to the board to be related in the application may if it is fulfilled in the application having favour to all the situations of the case, which the difference would unfairly preference of the shareholders of the class maintained by the applicant.The resolution of the board on any such application is terminal.
Special provisions to debentures
At any time the debenture trustee comes to a completion which the benefits of the company are restricted or probably to become restricted to perform the essential amount as when it becomes payable, the debenture trustee may register a request before the government. The registrar may takes place of business in Bangalore. The government may know this company and any other person focused in the subject by an order, manipulate such limitations on the suffering of any other extra liabilities as the government thinks required in the interests.