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Law No: 10/96 (An Unofficial Translation)
Increase of capital
40. A company may at a general meeting pass a resolution to increase its share capital.
Reduction of share capital
41. (a) A company may with prior written approval of the registrar of companies, by a special resolution at a general meeting reduce its shares capital if it is in excess of the company’s requirements provided it does not affect the rights of another.
(b) The application delivered to the registrar of companies as stated in sub-section (a) shall specify the nature and the extent of the share capital to be reduced.
(c) The registrar of the companies shall, upon receiving the application as stated in sub-section (a) and (b), make a public announcement of the proposed reduction of the company’s share capital.
(d) Permission for the reduction of the share capital shall be granted by the registrar if no object is lodged with the registrar by a member or any other person within one month of the announcement stated in sub-section (c).
(e) If a creditor or a member of the company or any other party lodges an objection with the registrar of companies giving reasons for the objection, within one month from the date of the announcement, stated in section (c) and if the registrar finds the objection acceptable then sub-section (d) does not prevent the registrar from granting the permission for the reduction of the capital provided that payment has been made to the claimant as instructed by the registrar and evidence of payment shown to the registrar or the company deposits into an account designated and for a specified time by the registrar an amount of money equivalent to the amount to be reduced from the capital.
