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Legal Terms - Alteration of Share Capital
An alteration in the authorized capital of a firm, which can involve an increase, reduction, or any other modification.
Pursuant to section 617 of the Companies Act 2006, a limited company has the ability to increase its authorized capital as necessary. In addition, the company has the ability to restructure its current authorized capital by merging 100 shares of £1 into 25 shares of £4 or by subdividing 100 shares of £1 into 200 shares of 50p. Furthermore, the company can also eliminate any shares that have not yet been issued. Unless stated otherwise in the articles of organization, these powers can be exercised through an ordinary resolution.
An alteration in the authorized capital of a firm, which can involve an increase, reduction, or any other modification.
Pursuant to section 617 of the Companies Act 2006, a limited company has the ability to increase its authorized capital as necessary. In addition, the company has the ability to restructure its current authorized capital by merging 100 shares of £1 into 25 shares of £4 or by subdividing 100 shares of £1 into 200 shares of 50p. Furthermore, the company can also eliminate any shares that have not yet been issued. Unless stated otherwise in the articles of organization, these powers can be exercised through an ordinary resolution.
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