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CSEET · Business Laws and Management · Elements of Company Law

Match the share capital action in List I with the condition or feature in List II. List I: (P) Consolidation and division of shares, (Q) Sub-division of shares, (R) Cancellation of unissued shares, (S) Kinds of share capital of a company limited by shares. List II: (1) Not a reduction of share capital, (2) Proportion between paid and unpaid amount on each reduced share remains the same, (3) Tribunal approval needed if voting percentage of shareholders changes, (4) Equity and preference.

The correct matching is P-3, Q-2, R-1, S-4. Consolidation changing voting percentages needs Tribunal approval, sub-division keeps the paid-unpaid proportion, cancellation of untaken shares is not a reduction of capital, and share capital is of equity and preference kinds.

  1. AP-3, Q-2, R-1, S-4Correct
  2. BP-2, Q-3, R-1, S-4
  3. CP-3, Q-1, R-2, S-4
  4. DP-1, Q-2, R-3, S-4

Explanation

Under Section 61, consolidation and division that changes voting percentage needs Tribunal approval (P-3). Sub-division must keep the paid-to-unpaid proportion (Q-2). Cancellation of shares not taken is not a reduction of capital (R-1). Section 43 provides equity and preference capital (S-4).

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