Two Types of Capital Reductions Not Expressly Authorised by the Companies

question 17

Multiple Choice

Two types of capital reductions not expressly authorised by the Companies Act are selective reductions and equal (access) reductions.Under the Act the shareholder approval requirements are:

• A)for both types of reduction, approved must be by a special resolution
• B)equal reductions require ordinary resolution and selective reductions can be approved by a resolution by all ordinary shareholders
• C)equal reductions require a resolution of all ordinary shareholders and selective reductions a special resolution by those shareholders whose shares are subject to the reduction
• D)no shareholder approval process is required

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Definitions:

Chemical Changes

Transformations that alter the chemical composition of a substance, resulting in the formation of new substances.

Population Control

Strategies and policies aimed at regulating the growth rate of a population to ensure sustainable resources and quality of life, often including family planning, education, and health care initiatives.

Inbreeding

The mating or breeding of closely related individuals, which can increase the chance of offspring inheriting genetic defects or disorders.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to the species' ability to adapt to changing environments.