17817-1910-Supplementary-Bills-read-a-first-time--Companies — Page 41

Perpetual lebentures.

8 Edw. 7 c. 69 103.

Power to re-issue re-

bentures in certain case1* 13. 8. 104.

490

(3) If inspection is refused, or a copy is refuged or not forwarded, the company shall shall be liable to a fine not exceeding fifty dollars, and to a further fine uot exceeding twenty dollars for every day during which the refusal continues, and every director, manager, secretary, or other officer of the company who knowingly authorises or permits such refusal shall incur the like penalty.

(4) If such inspection cannot be obtained at the regis- tered office of the company with the exercise of a reason- able amount of diligence, the company shall be liable to the same penalties as if such inspection had been actually refused.

Debentures and Floating Charges.

or

104. A condition contained in any debentures or in any deed for securing any debentures, whether issued executed before or after the passing of this Ordinance, shall not be invalid by reason only that thereby the deben- tures are made irredeemable, or redeemable only on the happening of a contingency, however remote, or on the expiration of a period, however long, any rule of equity to the contrary notwithstanding.

105-(1) Where either before or after the passing of this Ordinance a company has redeemed any debentures pre- deemed de viously issued, the company, unless the articles or the conditions of issue expressly otherwise provide, or unless the debentures have been redeemed iu pursuance of any obligation on the company so to do (not being an obliga- tion enforceable only by the person to whom the redeemed debentures were issued or his assigns), shall have power, and shall be deemed always to have had power, to keep the debentures alive for the purposes of re-issue, and where a company has purported to excrcise such a power the company shall have power, and shall be deemed always to have had power, to re-issue the debentures either by re-issuing the same debentures or by issuing other deben- tures in their place, and upon such a re-issue the person entitled to the debentures shall have, and shall be deemed always to have had, the same rights and priorities as if the debentures had not previously been issued.

(2) Where with the object of keeping debentures alive for the purpose of re-issue they have either before or after the passing of this Ordinance been transferred to a nominee of the company, a transfer from that nominee shall be deemed to be a re-issue for the purposes of this section.

(3) Where a company has either before or after the passing of this Ordinance deposited any of its debentures to secure advances from time to time on current account or otherwise, the debentures shall not be deemed to have been redeemed by reason only of the account of the company having ceased to be in debit whilst the debentures remained so deposited.

(4) The re-issue of a debenture or the issue of another debenture in its place under the power by this section, given to, or deemed to have been possessed by, a company, whether the re-issue was made before or after the passing of this Ordinance, shall be treated as the issue of a new debenture for the purposes of stamp duty, but it shall not be so treated for the purposes of any provision limiting the tmount or number of debentures to be issued :

Provided that any person lending money on the security of a debenture re-issued under this section which appears no be duly stamped may give the debenture in evidence in any proceedings for enforcing his security without payment of the stamp duty or any penalty in respect thereof, unless he had notice or, but for his negligence, might have dis- covered, that the debenture was not duly stamped, but in any such case the company shall be liable to pay the proper stamp duty and penalty,

(5) Nothing in this section shall prejudice--

(a) the operation of any judgment or order of a court of competent jurisdiction pronounced or made before the date of the coming into operation of this Ordinance as between the parties to the proceedings in which the judg-

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