COMPANIES ACT 1963 – SECT 68 Power of company to alter its share capital.
68.—(1) A company limited by shares or a company limited by guarantee and having a share capital, if so authorised by its articles, may in general meeting alter the conditions of its memorandum as follows, that is, it may—
( a ) increase its share capital by new shares of such amount as it thinks expedient;
( b ) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;
( c ) convert all or any of its paid up shares into stock, and re-convert that stock into paid up shares of any denominations;
( d ) 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;
( e ) 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, and diminish the amount of its share capital by the amount of the shares so cancelled.
(2) A cancellation of shares in pursuance of this section shall not be deemed to be a reduction of share capital within the meaning of this Act.