30/01/2006

COMPANIES (AMENDMENT) ACT 2005

The Amendment Act came into operation on 30 January 2006. The key amendments are:-

1. Abolishing the concept of "par value" and "authorised capital";

2. Introducing an alternative capital reduction process which does not require court sanction;

3. Introducing the concept of treasury shares;

4. Allowing share-buyback to be funded out of profits as well as capital so long as the company is solvent;

5. Liberalising the amalgamation process for companies.