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i) When the capital structure of a company is complex and it is required to make it simple.

(ii) When there are huge accumulated losses and it is required to write off these losses to depict a better position of the company.

(iii) When a part of the capital is not represented by available tangible assets.

(iv) When change is required in the face value of shares of the company so that they can become attractive for future investors.

By the use of the word "required" one logical answer is when it applies for bankruptcy usually under Chapter 11.

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