Cap. 386 Art. 104Duty of directors on serious loss of capital.

(1) Where the net assets of a public company are half or less of its called-up issued share capital, the directors shall, not later than thirty days from the earliest day on which that fact is known to any director of the company, duly convene a general meeting of the company by means of a notice to that effect for a date not later than forty days from the date of the notice for the purpose of considering whether any, and if so, what steps should be taken to deal with the situation, including consideration as to whether the company should be dissolved. In this sub-article, "net assets" shall have the same meaning assigned to it under article 193(2).

(2) In a meeting convened in pursuance of sub-article (1), only the steps mentioned in the said sub-article may be considered.

(3) If a general meeting as required by sub-article (1) is not convened, each of the directors of the company in default shall be liable to a penalty, and, for every day during which the default continues, to a further penalty.