The correct answer is: B. Articles should be altered.
The Articles of Association are the rules that govern a company. They are a contract between the company and its shareholders. The Articles of Association can be altered by a special resolution of the shareholders. A special resolution is a resolution that is passed by a majority of at least 75% of the votes cast.
If the
Articles of Association do not authorise the change in the capital, then the Articles must be altered. This can be done by passing a special resolution of the shareholders. The Articles can be altered by a special resolution even if the Articles do not specifically provide for this.The other options are incorrect. Table ‘A’ is a model set of Articles of Association that is provided by the Companies Act. It is not necessary to adopt Table ‘A’ in order to alter the capital of a company. Permission of the Registrar of Companies is not required to alter the capital of a company. Permission of the company Law Board is not required to alter the capital of a company.
Here is a brief explanation of each option:
- Option A: Table ‘A’ should be adopted. Table ‘A’ is a model set of Articles of Association that is provided by the Companies Act. It is not necessary to adopt Table ‘A’ in order to alter the capital of a company.
- Option B: Articles should be altered. The Articles of Association are the rules that govern a company. They are a contract between the company and its shareholders. The Articles of Association can be altered by a special resolution of the shareholders. A special resolution is a resolution that is passed by a majority of at least 75% of the votes cast.
- Option C: Permission of the Registrar of Companies should be obtained. Permission of the Registrar of Companies is not required to alter the capital of a company.
- Option D: Permission of the company Law Board should be obtained. Permission of the company Law Board is not required to alter the capital of a company.