Paragraph 41 Conversion of shares into stock (s. 540(2) and (3))I1

Section 540(2) of the Companies Act 2006 (prohibition on conversion of shares into stock) does not affect the conversion of shares into stock in pursuance of a resolution of the company in general meeting passed, or a written resolution agreed to, before 1st October 2009.

The reference in section 540(3) (reconversion) to stock created before the commencement of Part 17 of that Act includes stock created in pursuance of such a resolution.

Section 122(1)(b) and (2) of the 1985 Act or Article 132(1)(b) and (2) of the 1986 Order (notice to registrar of conversion) continue to apply in relation to the conversion of shares into stock under such a resolution.