(1) An unlimited company having a share capital may, by a resolution for registration as a limited company, do either or both of the following things, namely:—
- increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the amount so increased shall be capable of being called up except in the event of, and for the purpose of, the company being wound up;
- provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event of, and for the purpose of, the company being wound up.
(2) The share capital specified in clause (b) of sub-section (1) as not capable of being called up unless the company is wound up shall be known as "reserve share capital".