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Companies Act Amended
Posted on Tuesday, May 17, 2005 - 12:54 AM

Parliament on 16 May 2005 amended the Companies Act once again.
It is no longer relevant to refer to the par value of shares or the authorised share capital of companies as both concepts have been abolished.

Other amendments include allowing companies to reduce their share capital through a special shareholders' resolution without the need for Court approval.

They can also give financial assistance to third parties if the amount does not exceed 10 percent of the paid-up capital and reserves of the company, or given the approval of all shareholders.

Companies can also buy back shares or redeem their preference shares out of profit or paid-up capital.

They can also hold re-purchased shares in treasury instead of cancelling them, making it easier for companies to restructure their capital without having to issue new shares.

Finally, the amalgamation of companies including holding companies and their subsidiaries can now be done without a court order.

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