Section 86, The Companies Act, 2009

(1) A company having a share capital may in generalmeeting and not otherwise alter the conditions of its share capital so as to– (a) consolidate and divide all or any part of its share capital into shares of larger amount than its existing shares; (b) convert all or any of its paid-up shares into stock, and reconvert that stock into paid-up shares of any denomination; (c) subdivide its shares or any of them, into shares of smaller amounts than is fixed by the memorandum, so, however, that the subdivision of the proportion between the amount paid and the amount, if any, 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; (d) cancel shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled. (2) Cancellation of shares made in pursuance of subsection (1) shall not be deemed to be reduction of share capital within the meaning of this Act. (3) If a company alters its share capital under this section, it shall notify the Commission of the alteration within one month of the alteration. (4) If default is made in complying with this section the guilty of an offence and be liable to a fine of Le500,000 for each day during which the default continues.