52.
54
Cross Examined by mr. Fitzrovi
1
A 4.
A.
4.
A.
છે.
A.
A..
4.
A.
A.
9.
284
A.
A.
Q.
The object of nelling shares is to obtail capital' Certainly.
(Reauing Byplcation for personal loan form) If he gets that a debt is incurred and nothing else? Yes.
(Re lien on shares) up till that time it is a debt only. is not the result that you have got rid of the shares act for onpital but for credit?. In the ordinary course of events a company starts to operate and their uncalled capital is looked upor as an asset, provided the people who apply to the company are substantial.
Is not the net result that you have sold debts on credit?,
That is 90, with an obligation to pay the balance. would you yourself consider that a good security, mere names?.
Provided that form was drawn up by the legal adviper of the soupany, yes.
You would consider that good security?.
I would not take that form as a legal document until I submitted it to my legal adviser and he told me he believed it was a legal document. would you not wub to know if the people could be trusted?.
Before this takes place my Directors have allotted shares to certain people. if those people were not substantial then the shareholders are also not substantial.
Until the Directora havo allotted, he is not a Member of the company" -
In an ordinary company the Directors do not know the people who y?.
Only that those shares come through a recognised stoak and share broker and he will not put on his stamy mless he me the financial standing of the applicantus,
You have the application and money, you suggest a iroker should refuse to forward it?.
Of course I don't know if all aplications are re- csived, generally it is accepted unless there is an over subscription.
that sort of security do you think you have got?.
(Referring to the Document).
I can call up that money, it is not share capital You have lost the right to the shares?,
I have lost the right of forfeitture and those shares are fully paid and the only thing I lose is the right of forfeiture.
Merely a arose entry has happened?.
Yes.
where have you improved the position?.
I have a document here transferring that debt of share capital to a loan account and have a better security because if I wanted money immediately i could on that doowwert demand it.
Nothing has passed, is that a true way of showing capital?.
I am saying this, I would rather have this docu-
ment than what would have as uncalled capital.