CA Inter P1 · Chapter 12 · Question 4 of 8
Case: Jhanvi Ltd sub-divides its equity shares of ₹10 each into equity shares of ₹1 each, without any change in the total paid-up capital. This is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An alteration of share capital under section 61, which does not require confirmation by the Tribunal
Explanation
Sub-division (and consolidation) of shares is an alteration of share capital under section 61, permitted if authorised by the articles and approved by the members in general meeting. It does not reduce paid-up capital or return capital to shareholders, so confirmation by the Tribunal under section 66 is not required.
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