Section 125 CAMA 2020

Section 125 Companies and Allied Matters Act is about Alteration of share capital by consolidation, etc. It is under Chapter 7 (Share Capital) of PART B (Incorporation of Companies and Incidental Matters) of the Act.

A company having a share capital may in general meeting and not otherwise, alter the conditions of its memorandum to —

(a) consolidate and divide all or any part of its share capital into shares of larger amount than its existing shares; and

(b) subdivide its shares or any of them, into shares of smaller amount than is fixed by the memorandum, but in the subdivision the proportion between the amount
paid and the amount unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived.

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