189331-1932-Ordinances-passed-and-assented-to--Opium-Amendment-No-36-of-1932-Police-Force-No-37-of-1932-Prisons--No-38-of-1932-Companies-No-39-of-1932 — Page 35

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THE HONG KONG GOVERNMENT GAZETTE, DECEMBER 2, 1932.

Power to issue re- deemable preference shares.

19 & 20 Geo.

5, c. 23,

8. 46.

Provided that nothing in this section shah be taken to prohibit-

(a) where the lending of money is part of the ordinary business of a company, the lending of money by the company in the ordinary course of its business;

(b) the provision by a company, in accordance with any scheme for the time being in force, of money for the purchase by trustees of fully-paid shares in the company to be held by or for the benefit of employees of the company, including any director holding a salaried employment or office in the company; (c) the making by a company of loans to persons, other than directors, bonâ fide in the employ- ment of the company with a view to enabling those persons to purchase fully-paid shares in the company to be held by themselves by way of beneficial ownership.

(2) The aggregate amount of any outstanding loans made under the authority of provisos (b) and (c) to subsection (1) of this section shall be shown as a separate item in every balance sheet of the company.

(3) If a company nets in contravention of this sec- tion, the company and every officer of the company who is in default shall be liable to a fine not exceeding one thousand dollars.

Issue of Redeemable Preference Shares and Shares at Discount.

48.--(1) Subject to the provisions of this section, a company limited by shares may, if so authorised by its articles, issue preference shares which are, or at the option of the company are to be liable, to be redeemed:

OF

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Provided that-

(a) no such shares shall be redeemed except out of profits of the company which would other- wise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption;

(b) no such shares shall be redeemed unless they

are fully paid;

(c) where any such shares are redeemed otherwise than out of the proceeds of a fresh issue, there shall cut of profits which would otherwise have been available for dividend be trans- formed to a reserve fund, to be called "the cantal redemption reserve fund," a sum equal to the amount applied in redeeming the shures, and the provisions of this Ordin- relating to the reduction of the share empial of a company shall, except as provided section. apply RS if the capital reserve tund were paid-up share the company;

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such shares are redeemed out of es of a fresh issue, the premium, payable on redemption, must have sad for out of the profits of the

Lore the shures are redeemed

meluded in every balance sheet Ins issued resectable preference cuying what part of the issued Consues of such shares and which use shares are, or are freed

do comply with the provisions COL y and every officer of dent shall be liable to a thousand dollars.

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