Chapter 10 — Company Capital, Shares and Debentures
1–20 of 29 provisions
Section 147 — Shares
Chapter: 10 — Company Capital, Shares and Debentures
A share in a company is movable property belonging to the member who owns it. A share may be sold, transferred from one person to another or assigned in accordance with the provisions of the Constitution of the company and section 163 of this Act.
Text status: Unofficial English translation.
Section 148 — Joint Shareholding
Chapter: 10 — Company Capital, Shares and Debentures
Unless prohibited by the Articles of Association of the company, a share may be held jointly by 2 or more persons. In such a case, only one of those persons shall represent the share for all purposes of the company.
Text status: Unofficial English translation.
Section 149 — Value of Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) The original value of a share is its nominal value, being the par value stated on the share certificate. (b) A company shall not sell a share at a price below its nominal value.
Text status: Unofficial English translation.
Section 150 — Dividends
Chapter: 10 — Company Capital, Shares and Debentures
(a) A dividend is an amount determined to be distributed to the members from the profits of the company in accordance with the Constitution of the company. (b) Dividends shall be distributed only from profits earned by the company through its business operations. (c) The Articles of Association…
Text status: Unofficial English translation.
Section 151 — Variation and Abrogation of Rights of Classes of Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) The Articles of Association of a company shall specify the procedure for varying or abrogating the rights attached to classes of shares. (b) Where a company decides to vary or abrogate the rights attached to a particular class of shares, the company shall notify the members of that class…
Text status: Unofficial English translation.
Section 152 — Increase of Capital
Chapter: 10 — Company Capital, Shares and Debentures
The share capital of a company may be increased by a special resolution of the members.
Text status: Unofficial English translation.
Section 153 — Reduction of Capital
Chapter: 10 — Company Capital, Shares and Debentures
(a) Where a company has capital in excess of its requirements, its share capital may be reduced in accordance with this section by a special resolution of the members, provided that the reduction does not prejudice the rights of any other person. (b) Where a decision of the members to reduce the…
Text status: Unofficial English translation.
Section 154 — Notification of Capital Alteration to the Registrar
Chapter: 10 — Company Capital, Shares and Debentures
(a) Where an alteration is made to the share capital of a company under section 152 or 153 of this Act, the company must notify the Registrar within 30 days of the alteration and submit an application for registration of the alteration in the manner prescribed by regulations made under this Act.…
Text status: Unofficial English translation.
Section 155 — Allotment of Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) Upon registration of a company under this Act, shares shall be allotted, in the respective proportions, to the persons who agreed in the Articles of Association to take shares in the company. (b) In the case of a company other than a public company, and in circumstances other than those…
Text status: Unofficial English translation.
Section 156 — Consent for Allotment
Chapter: 10 — Company Capital, Shares and Debentures
Where the allotment of a share to any person increases an existing obligation of that person to the company or creates a new obligation, the written consent of that person must be obtained. An allotment made in contravention of this section is void.
Text status: Unofficial English translation.
Section 157 — Recording in the Register of Members
Chapter: 10 — Company Capital, Shares and Debentures
Where shares are allotted under section 155 of this Act, the shareholding of a member changes under section 163, or shares are transmitted under section 167, the change must be entered in the Register of Members maintained under section 81 of this Act.
Text status: Unofficial English translation.
Section 158 — Consideration for Allotment
Chapter: 10 — Company Capital, Shares and Debentures
Unless otherwise provided in the Constitution of the company, the consideration for the allotment of shares shall be determined by the Board of Directors. The consideration may consist of cash, promissory notes, service contracts, property or other financial products of the company.
Text status: Unofficial English translation.
Section 159 — Prohibition on Financial Assistance
Chapter: 10 — Company Capital, Shares and Debentures
A company shall not provide financial assistance to a member for the purchase of shares or other securities of the company except in accordance with regulations made under this Act.
Text status: Unofficial English translation.
Section 160 — Call on Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) Where a member has not paid an amount due on shares held by that member, the Board of Directors may make a call requiring payment of that amount. (b) Where shares are allotted subject to a condition requiring payment by a specified date, the amount shall become due on that date without the…
Text status: Unofficial English translation.
Section 161 — Forfeiture of Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) Where a member fails to pay an amount due on shares within the period specified in a notice given under section 160 of this Act, the Board of Directors may, after giving notice in accordance with this section, forfeit the shares to the company. (b) A notice under subsection (a) shall— (1)…
Text status: Unofficial English translation.
Section 162 — Right of First Refusal
Chapter: 10 — Company Capital, Shares and Debentures
Unless otherwise provided in the Constitution of a private company, shares proposed by a member to be transferred to a third party shall first be offered to the existing members of the company. The shares may be transferred to a third party only where the existing member or members decline to…
Text status: Unofficial English translation.
Section 163 — Transfer of Shares
Chapter: 10 — Company Capital, Shares and Debentures
(a) Subject to the Constitution of the company, shares may be transferred from one person to another by registering the transfer in the Register of Members in accordance with this section. (b) Upon receipt at the service address of the company of an instrument of transfer of shares, the company…
Text status: Unofficial English translation.
Section 164 — Time of Transfer
Chapter: 10 — Company Capital, Shares and Debentures
Unless otherwise provided in the Constitution of the company, a transfer of shares takes effect when the transfer is registered by the company and entered in the Register of Members in accordance with section 163(b) of this Act.
Text status: Unofficial English translation.
Section 165 — Issuance of Certificates on Transfer
Chapter: 10 — Company Capital, Shares and Debentures
Upon the allotment of shares under section 155, the transfer of shares under section 163, the transmission of shares under section 167, or any other change to the Register of Members under this Chapter, the company shall issue a share certificate to the member in accordance with section 86 of this…
Text status: Unofficial English translation.
Section 166 — Transfer of Shares by Operation of Law
Chapter: 10 — Company Capital, Shares and Debentures
Notwithstanding any provision of the Constitution of the company, shares may be transferred from one person to another by operation of law.
Text status: Unofficial English translation.
This page is a general research and practice aid. The translations used in this manual are unofficial. Verify the official Dhivehi legislation, amendments and current procedures before relying on any entry. Read our sources and verification guidance and contact a lawyer at Sulthan & Amhar for advice on your circumstances before relying on this material or taking action.