COMPANIES.
No. 58 of 1911.
2053
89. (1) A company shall not commence any business or exercise any borrowing powers unless--
Restrictions on commencement of business.
(a) shares held subject to the payment of the whole amount thereof in cash have been allotted to an amount not less in the whole than the minimum subscription; and
(b) every director of the company has paid to the company on each of the shares taken or contracted to be taken by him, and for which he is liable to pay in cash, a proportion equal to the proportion payable on application and allotment on the shares offered for public subscription, or in the case of a company which does not issue a prospectus inviting the public to subscribe for its shares, on the shares payable in cash; and
(c) it has been proved to the Registrar of Companies to his satisfaction that the conditions of this sub-section have been complied with; and
(d) in the case of a company which does not issue a prospectus inviting the public to subscribe for its shares, there has been filed with the Registrar of Companies a statement in lieu of prospectus.
(2)(a) For the purpose of satisfying himself that the conditions of sub-section (1) have been complied with, it shall be lawful for the Registrar of Companies to require---
(i) the filing of one or more statutory declarations in such form and by such directors or other officers of the company as he may in each case prescribe;
(ii) the production and verification of such documents relating to the company as he may in each case call for; and
(iii) such additional evidence of bona fides as he may in each case consider necessary.
(b) Upon the company complying with the aforesaid conditions, the Registrar of Companies shall certify that the company is entitled to commence business, and such certificate shall be conclusive evidence that the company is so entitled.
* As amended by No. 22 of 1913, No. 31 of 1915, No. 12 of 1921, No. 33 of 1923 and Law Rev. Ord., 1924.