Section 86. Conversion of shares into stock

(1) Subject to the constitution, a company may by resolution convert any paid-up shares into stock and reconvert any stock into paid-up shares of any number.

(2) The stockholders may transfer the shares or any part of the shares in the same manner as the transfer of shares from which the stock arose may, before the conversion, have been transferred or be transferred in the closest manner as the circumstances allow.

(3) The directors may fix the minimum amount of stock transferable and may restrict or forbid the transfer of fractions of that minimum.

(4) For the purposes of this section, any reference in this Act applicable to paid-up shares shall apply to stock, and the words “share” and “shareholder” shall include “stock” and “stockholder” respectively.