Re-enragement of Share Capital. A company may also reorganize its share capital

Re-enragement of Share Capital. A company may also reorganize its share capital by the consolidation of shares of different classes, or by division
of shares into different classes. or by both these methods Section 390 (b)].
Where reorganization of share capital is proposed between (0) a company and its creditors or any class of them. or (b) between a company
and its members or any class of them, the court may order a meeting of creditors or members on an application by the company, or members, or
creditors, or liquidate (in case the company is being wound up). The reorganization of capital shall be binding if the scheme is approved by a majority of
three-fourths in value of the creditors or members present and voting in person or by proxy. The scheme should also be sanctioned by the court. (See
Chapter 21 for details)
It should be noted here that where any alteration is made in the Memorandum, every copy of the Memorandum issued thereafter must incorporate the
alteration. For non-compliance with the provision, the company and every officer thereof who is in default shall be punishable with fine which may extend to

Rs. 100 for each copy so issued (Sec. 40).