Consolidation of share capital query

meera (student) (36 Points)

18 April 2012  

A company wants to consolidate its share capital. At present it has a share capital of  40,00,000 shares of Rs. 10 each. After consolidation, it becomes 2000 shares of Rs. 20,000 each. Is this possible, such a large denomination? Also, kindly suggest some case laws on the same.