(1) Notwithstanding anything to the contrary in any Act, rules, or regulations, or in any memorandum of association, articles of association, order of court, deed, or document to which the company may be a party, every company that has issued debentures to which section 11 of the Finance Act (No 2) 1940 applies, may at any time before 1 August 1942, and without further authority than this section, exercise the powers set forth in any one of the following paragraphs (a), (b), and (c), namely:
(c) with the consent of a Judge of the Supreme Court, cancel any 1 or more of those debentures and issue to the holders of the debenture or debentures so cancelled in substitution therefor and in full satisfaction thereof fully paid up shares in the company having a nominal value equal to the amount of the debenture or debentures so cancelled, and reduce the rate of interest payable under every debenture not so cancelled to the rate of 3.5% per annum:
provided that where the company has issued 2 or more classes of shares or 2 or more classes of debentures to which section 11 aforesaid applies, any shares issued in substitution for debentures pursuant to the provisions of paragraph (b) or paragraph (c) shall be issued in such classes and subject to such terms and conditions and with such rights and priorities as between different classes of shares as shall be approved by a Judge of the Supreme Court:
provided also that where the holder of any debenture or debentures to which section 11 applies is also the holder of partly paid up shares in the company the company may, with the consent of a Judge of the Supreme Court, call up any moneys unpaid on those shares and cancel the debenture or debentures by applying the amount thereof in or towards satisfaction of the amount of the call:
provided also that if the company exercises any of the powers aforesaid the holder of any such debenture that had been transferred for a consideration in money or money's worth (otherwise than by way of dividend) at any time before 30 August 1940 may by notice in writing to be given within 3 months after the exercise of the powers require the company to redeem that debenture within 6 months after the giving of the notice by paying to him in full satisfaction thereof an amount equal to the purchase price for which the debenture was last transferred before 1 August 1941 together with all interest accruing under the debenture to the date of redemption.