9How conversion may be effected

9 How conversion may be effected

9 How conversion may be effected

(1) Any such conversion of debentures into Stock may be effected either:

(a) by arrangement with the holders of such debentures or

(b) by purchase thereof out of moneys raised by the sale of new Stock or

(c) partly in the one way and partly in the other.

(2) Nothing in this Act shall authorise an increase in the authorised amount of any loan save only where debentures exchanged for Stock bear a higher rate of interest than such Stock in which case an additional amount of Stock may be issued to make up the difference in current saleable value between such Stock and debentures.