rainmaker wrote:@slstock ..... there are two options available to a company as per section 59 of Companies Act. Cancel shares or accept a lower par value per share. Senanayake opted the second option but the share price drops with the second option.
Once again the book may be slightly outdated.
SEMB and CSEC reduced stated capital by writing off stated capital against retained losses. I'm not an expert on companies act but the new Companies Act obviously seems to allow SEMB/CSEC to reduce stated capital without reducing issued shares.