CAF-4 · Chapter 20 · Question 15 of 15
A company decides to alter its share capital by consolidating 10 shares of Rs. 10 each into 1 share of Rs. 100. What resolution is required to effect this alteration?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A special resolution
Explanation
Any alteration to the share capital clause of the memorandum of association, including consolidation or sub-division of shares, requires the company to pass a special resolution.
More Share capital and commencement of business MCQs
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