(f) cancelled any shares, otherwise than in connection with a reduction of share capital under section
ninety-two;
it shall, within one month after so doing, give notice thereof to the Registrar specifying, as the case may be, the
shares consolidated, divided, converted, subdivided, redeemed or cancelled or the stock recon verted.
(2 ) If default is made in complying with the requirements of subsection (1) the company and every officer of
the company who is in default shall be guilty of an offence and liable to a default fine not exceeding level one.
[Section as amended by Act No. 22 of 2001]
89 Notice of increase of share capital
(1 ) Where a company, whether its shares have or have not been converted into stock, has increased its share
capital beyond the registered share capital, it shall give to the Registrar notice thereof within one month after the
passing of the special resolution authorizing such increase and the Registrar shall register the increase.
(2 ) If default is made in complying with the requirements of subsection (1) the company and every officer of
the company who is in default shall be guilty of an offence and liable to a default fine not exceeding level one.
[Section as amended by Act No. 22 of 2001]
90 Payment of interest out of capital
Where any shares of a company are issued for the purpose of raising money to defray the expenses of the
construction of works or buildings or the provision of any plant which cannot be made profitable for a lengthy
period, the company may pay interest on so much of that share capital as is for the time being paid up for the
period and may charge the sum to capital as part of the cost of construction of the works or buildings or the provision of plant, as the case may be, subject to the following conditions—
(a ) no such payment shall be made unless it is authorized by the articles or by special resolution; and
(b ) whether authorized by the articles or by special resolution, no such payment shall be ma de without the
prior approval of the Minister; and
(c) before approving any such payment the Minister may at the expense of the company appoint a person to
inquire and report to him as to the circumstances of the case and before making such appointment may
require the company to give satisfactory security for the payment of the costs of the inquiry; and
(d ) the payment shall be made only for such period as may be determined by the Minister and such period
shall in no case extend beyond the close of the half year next after the half year during which the works
or buildings have been completed or the plant provided, as the case may be; and
(e) the rate of interest shall in no case exceed six per centum per annum or such other rate as may for the
time being be prescribed; and
(f) the payment of the interest shall not operate as a reduction of the amount paid up on the shares in respect
of which it is paid.
91 Variation of rights attaching to shares
(1 ) If, in the case of a company the share capital of which is divided into different classes of shares, provision
is made by the memorandum or articles for authorizing the variation of the rights attached to any class of shares in
the company, subject to the consent of any specified proportion of the holders of t he issued shares of that class or
the sanction of a resolution passed at a separate meeting of the holders of those shares, and in pursuance of the
said provision the rights attached to any such class of shares are at any time varied, the holders of not le ss in the
aggregate than fifteen per centum of the issued shares of that class, being persons who did not consent to or vote
in favour of the resolution for the variation, may apply to the court to have the variation cancelled, and, where any
such application is made, the variation shall not have effect unless and until it is confirmed by the court.
(2 ) An application under this section must be made within one month after the date on which the consent was
given or the resolution was passed, as the case may be, and may be made on behalf of the members entitled to
make the application by such one or more of their number as they may appoint in writing for the purpose.
(3 ) On any such application the court, after hearing the applicant and any other persons who apply to the
court to be heard and appear to the court to be interested in the application, may, if it is satisfied, having regard to
all the circumstances of the case, that the variation would unfairly prejudice the members of the class represented
by the applicant, disallow the variation and shall, if not so satisfied, confirm the variation.
(4 ) The decision of the court on any such application shall be final.
(5 ) The company shall, within one month after the making of an order by the court on any such application,
forward a copy of the order to the Registrar and, if default is made in complying with this provision, the company
and every officer of the company who is in default shall be guilty of an offence and liable to a default fine not
exceeding level one.
(6 ) The expression “variation” in this section includes abrogation and the expression “varied” shall be co nstrued accordingly.
[Section as amended by Act No. 22 of 2001]
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