2120
No. 58 of 1911.
Effect of irregular allotment.
8 Edw. 7 c. 69 s. 86.
COMPANIES.
than in cash, and is in this Ordinance referred to as the minimum subscription.
(3) The amount payable on application on each share shall not be less than 5 per cent. of the nominal amount of the share.
(4) If the conditions aforesaid have not been complied with on or before the expiration of 40 days after the first issue of the prospectus, money received from applicants for shares shall be forthwith repaid to the applicants without interest, and, if any such money is not so repaid within 48 days after the issue of the prospectus, the directors of the company shall be jointly and severally liable to repay that money with interest at the rate of 5 per cent. from the expiration of the forty-eighth day:
Provided that a director shall not be liable if he proves that the loss of the money was not due to any misconduct or negligence on his part.
(5) Any condition requiring or binding any applicant for shares to waive compliance with any requirement of this section shall be void.
(6) This section, except sub-section (3), shall not apply to any allotment of shares subsequent to the first allotment of shares offered to the public for subscription.
(7) In the case of the first allotment of share capital payable in cash of a company which does not issue any invitation to the public to subscribe for its shares, no allotment shall be made unless the minimum subscription (that is to say)—
(a) the amount (if any) fixed by the memorandum or articles and named in the statement in lieu of prospectus as the minimum subscription upon which the directors may proceed to allotment; or
(b) if no amount is so fixed and named, then the whole amount of the share capital other than that issued or agreed to be issued as fully or partly paid up otherwise than in cash,
has been subscribed and an amount not less than 5 per cent. of the nominal amount of each share payable in cash has been paid to and received by the company.
This sub-section shall not apply to a private company or to a company which has allotted any shares or debentures before the commencement of this Ordinance.
88.—(1) An allotment made by a company to an applicant in contravention of the provisions of the last foregoing section shall be voidable...