Their proceedings should be regularly checked in detail by the Registrar of Companies, who should be responsible to bring before the court, in a simple and inexpensive way, as in Bankruptcy and without legal intervention, all irregularities; and that as to all new companies, the prospectus and deed of Association should be settled by a Judge with full powers to enquire, who should certify that they are right in all respects whatever. This would tend to, if it does not absolutely prevent, delusive schemes.
16.
Page 317
I now proceed to comment on the provisions of the Bill, which was withdrawn on the 16th Instant.
Clauses 4 to 8 provide that there may be unlimited liability of Directors, if so provided in the Memorandum of Association. These are useless provisions, for as the promoters usually intend to command the nomination of Directors, they will never have the memorandum so expressed.
Sections 9 to 19 provide for the reduction of capital and shares. Now, a company starting with a large capital in this colony gains credit all over the world, as its capital is at first advertised. The Bill, by these sections, authorises the company to reduce that announced capital by ... to ...
(1965, 7 } 76 −H & S 1815)