Companies Act Section 65 — Unlimited company to provide for reserve share capital on conversion into limited company
CHAPTER IV SHARE CAPITAL AND DEBENTURES
Commercial / Corporate
Summary
An unlimited company that has a share capital may, when it passes a resolution to register itself as a limited company under this Act, choose to do either or both of the following things.
Under clause (a), the company may increase the nominal amount of its share capital by increasing the nominal amount of each of its shares. However, this is subject to the condition that no part of the increased capital can be called up except in the event of the company being wound up, and only for the purposes of that winding up.
Under clause (b), the company may provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event of the company being wound up, and only for the purposes of that winding up.
Official Text
An unlimited company having a share capital may, by a resolution for registration as a limited company under this Act, do either or both of the following things, namely—
(a) increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up;
(b) provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the company being wound up.