Section 42

A share issued by an IBC as dividend shall be treated for all purposes as having been issued for money equal to the surplus that is transferred to capital upon the issue of the share.

In the case of a dividend of authorised but unissued shares with par value, an amount equal to the aggregate par value of the shares shall be transferred from surplus to capital at the time of distribution.

In the case of a dividend of authorised but unissued shares without par value, such amount (if any) as may be designated by the directors shall be transferred from surplus to capital at the time of the distribution; but, if the share is a preference share preferred as to entitlement on a liquidation, the directors shall so designate an amount not less than the preferred amount.

A division of the issued and outstanding shares of a class or series of shares with par value into a larger number of shares of the same class or series having a proportionately smaller par value does not constitute a dividend.

Incorporating amendments until S 53/2017

(Clean Vesion) NANI/zimah _ as of 11 February 2020

48

BLUV as at 20th June 2017

Alteration of share capital.