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Alteration of Capital:
A company is empowered by S.63 to alter the provisions of its memorandum of association which relates to its registered or authorised capital. However, the power is exercisable subject to the following conditions:
a) The articles must confer the authority to alter the capital. If they do not, they may be altered by special resolution and the authority incorporated therein.
b) The company must hold a general meeting for the purpose of altering the capital.
c) The alteration must be authorised by an ordinary resolution.
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Protection of General Public: It may happen that a resolution reducing a company's capital was passed in circumstances which indicate that the shareholders had not been proper
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