Alteration of Share Capital

English Legal System: Alteration of Share Capital

In the context of the English law, A Dictionary of Law provides the following legal concept of Alteration of Share Capital : An increase, reduction (See reduction of capital), or any other change in the *authorized capital of a company. If permitted by the *articles of association, a limited company can increase its authorized capital as appropriate. It can also rearrange its existing authorized capital (e.g. by consolidating 100 shares of £1 into 25 shares of £4 or by subdividing 100 shares of £1 into 200 of 50p) and cancel unissued shares. These are reserved powers (See general meeting), exercised – unless the articles of association provide otherwise – by an *ordinary resolution.