Section 1217.- The inspectors must make a report to be written or printed as the competent Minister directs. Copies must be forwarded by the Minister to the registered office of the company and to the shareholders upon whose application the inspection was made.

 

Section 1218.- All expenses of such inspection must be repaid by the applicants, unless the company, in the first general meeting after such inspection is finished, consents that the same shall be paid out of the assets of the company.

 

Section 1219.- The competent Minister may also, of his own motion, appoint inspectors to report to the Government on the affairs of the company. Such appointment lies entirely within the discretion of the Minister.  

PART VI

INCREASES AND REDUCTIONS OF CAPITAL

 

Section 1220.- A limited company can by special resolution increase its capital by issuing new shares.

 

Section 1221.- No new shares of a limited company may be allotted as fully or partly paid-up otherwise than in money, except in execution of a special resolution.

 

Section 1222.- All new shares must be offered to the shareholders in proportion to the shares held by them.

Such offer must be made by notice specifying the number of shares to which the shareholder is entitled, and fixing a date after which the offer, if not accepted, shall be deemed to be declined.

After such date or on the receipt of an intimation from the shareholder that he declined to accept the shares offered, the director may offer such shares for subscription to other shareholders or may subscribe to the shares himself.

 

Section 1223.- A notice to any shareholder to subscriber for New Shares must be dated and signed to the directors.

 

Section 1224.- A limited company may, by special resolution, reduce its capital either by lowering the amount of each share or by reducing the number of shares.

 

Section 1225.- The capital of the company may not be reduced to less than one-fourth of its total amount.

 

Section 1226.- When a company proposes to reduce its capital, it must publish seven times at least in a local paper and send to all creditors known to the company a notice of the particulars of the proposed reduction, requiring the creditors to present within three months from the date of such notice any objection they may have to such reduction.

If no objection is raised within the period of three months, none is deemed to exist.

If objection is raised, the company cannot proceed with the reduction of its capital unless it has satisfied the claim or given security for it.