ABSTRACT

General questions arising in this area are on such matters as the power of the company and/or the board to issue or rearrange share capital (including schemes of arrangement under ss 895-901 of the Companies Act (CA) 2006) and the capital maintenance doctrine. This doctrine covers the issue of shares (including the nature of the consideration and valuation procedures), as well as dealings in respect of shares, such as the payment of dividends out of capital and the ability of the company to buy (or assist others to buy) its shares. In addition to questions on the issue of shares, this chapter includes questions on doing things with shares, for example, the transfer of shares, variation of class rights and issues relating to takeovers may arise in this context.