(1) Each provision of this section applies save where the company's constitution provides otherwise.

(2) In subsections (3) and (4) "relevant sum" means -

(a) any sum for the time being standing to the credit of the company's undenominated capital;

(b) any of the company's profits available for distribution; or

(c) any sum representing unrealised revaluation reserves.

(3) The company in general meeting may, on the recommendation of the directors, resolve that any relevant sum be capitalised and applied on behalf of the members who would have been entitled to receive that sum if it had been distributed by way of dividend and in the same proportions in or towards paying up in full unissued shares of the company of a nominal value equal to the relevant sum capitalised (such shares to be allotted and distributed credited as fully paid up to and amongst such holders and in the proportions as aforementioned).